Division: Phoenix Management Services, Phoenix Capital Resources


Sico was a 130 year-old, $100 million convenience store and gas station chain and heating oil distributor based in Lancaster, Pennsylvania.


Sico’s management had lost the confidence of both its employees and creditors. The Company was in default of its loan and faced a severe cash liquidity crisis as a result of operating losses and its mismatch of short-term funding used to pay for long-lived assets.


Phoenix Management Services assumed the positions of CEO and CFO. Phoenix then led a restructuring of operations that included the sale of non-core and unprofitable divisions. Phoenix implemented significant changes to Sico’s business strategies, including rationalizing its workforce and using seasonal help to deliver services in peak business periods. Other elements to Sico’s turnaround strategy included revamping transportation delivery strategies, outsourcing certain services, and modifications to the Company’s pricing and hedging strategies. To finance the turnaround effort and de-leverage the Company, Phoenix used the proceeds of the non-core asset sales and effectuated a recapitalization of the Company’s balance sheet. Finally, Phoenix recruited a permanent CFO and CEO.