Case B

A department store chain with 18,000 employees and 110 stores across the country consistently showed a loss, projects were not completed, its IT structure was expensive and inadequate and numerous other problems plagued the company. As a result, the entire chain was facing bankruptcy.

After Galeazzi & Associados was retained and implemented Interim Management using a Working Group, new Planning and Zero Based Budgeting. The effort included supervising and coaching executives, as well as support for preparing to divest assets. The overall objective was to redesign operations, separate operating from non operating assets and a return to profitability.

The major achievements were 18% cost savings and an increase in gross margin from 22% to 27% of net sales. Negative EBITDA was reversed and the concept of each store was completely renewed.