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Case Study

Serving as CRO Through a Complex Chapter 11 Reorganization

Team Size
2 Senior Managing Directors, 2 Directors, 1.5 Associates
Project Duration
10 weeks

The Situation & Approach

An iconic firearms manufacturer serving government and commercial markets with $220M in revenues, $125M senior secured debt, and $260M senior notes, was facing declining sales, a high fixed cost structure, declining EBITDA, operational and liquidity issues, and an inability to fund interest payments to bond holders. Mackinac Partners (acquired by Accordion in 2021), was initially engaged by the Board as CRO and financial advisors, but the scope broadened as the Company’s supply chain began to worsen and impact operations.


CRO / Restructuring Advisory & Performance Improvement

Liquidity Management

Bankruptcy Services

Supply Chain Optimization

The Execution

  • Implemented lean manufacturing which led to a reduction in cycle times by over 55%.
  • Optimized the supply chain, which decreased the inventory investment by $2MM while increasing new vendor partnerships, and drove down unit cost while increasing fill-rates by 350 bps.
  • Assisted with government contracts with entities such as the DOD and managed export/import work with Interco (International Commercial Terms) requirements, FCPA requirements, and ATF approvals.
  • Helped the Company execute a long-term lease for its West Hartford Facility and entered into a Memorandum of Understanding with the United Auto Workers that reaffirmed its strong relationship with the union and its workforce.
  • Supported the executive team with cash management, bankruptcy preparation, reporting, and development of a five-year projection and turnaround business plan.
  • Engaged in the complex negotiation of a consensual plan of reorganization that allowed the Company to emerge successfully from bankruptcy in January 2016.
  • Led the Company’s engineering, manufacturing, procurement, and supply chain through a successful turnaround of its operations.

The Results

As financial advisors and CRO, our team helped the Company improve operations, increase efficiencies, and implement a successful Plan of Reorganization which reduced debt by $200 million and raised new capital of $50 million. The restructuring was completed within 10 months, including the successful confirmation of a consensual Plan of Reorganization.