In January 2013, American Management Services Inc. (AMS) was retained by Dutchess Capital Management LLC (Dutchess) to assess the viability of a Dutchess portfolio company whose business had deteriorated to the extent that it was near default on its senior secured obligation to Dutchess. AMS’s consulting team led by David Corso and Steve Mullins performed the due diligence on the company for Dutchess, which included assessing the company’s financial condition, marketing and sales positioning, along with an overall evaluation of the human resources and daily operations. The objective was for AMS to advice Dutchess of its options, which would hopefully include a path to either a partial or total recovery of its investment. AMS’s recommendation was to continue operations while planning a recapitalization.
In April 2013 upon its default, the company’s assets were assigned to Dutchess and the entire senior management team resigned. At this juncture, AMS was again retained by Dutchess to assist it in managing the company’s daily operations while a longer term strategy could be devised. AMS’s consultant, Steve Mullins, was appointed by AMS and approved by Dutchess, to act in an interim CEO capacity for the company. While the company continued to struggle due to weak fundamentals and numerous legacy issues, Steve’s efforts over the ensuing eighteen months were vital in keeping the company afloat while a decision could be determined regarding its long-term future. Steve’s ability to successfully manage and achieve the respect of the company’s personnel, develop short term strategies, communicate with vendors, suppliers, and the landlord while managing cash flow, among many other functions, served to achieve our objectives, whereby the company is now positioned for a restructuring, capital infusion and the potential for a small public offering.
We reorganize AMS, and specifically Steve’s, outstanding performance in helping preserve our investment, which was the objective of this engagement. We would highly recommend American Management Services and STeve Mullins for your interim management and turnaround consulting services.