Turning Points
Turning Points is dedicated to helping industry leaders survive the current recession and to prepare for success in the inevitable economic recovery.
Banks are Lending!!!
Seven months ago my client was presented with their bank's plan of forced liquidation. That's when they called me. Even while charging 10% interest on a fully collateralized loan, the bank had lost patience and was ready to force change. Options from alternative lenders were all in the range of 16% - 18%.Today my client has offers to lend $10million at 3% interest from four strong regional a... Read More
Comments (6)Kicking the Can Down the Road
Good news for troubled companies sweating it out about their next refinancing. Banks continue to "Amend and Extend" their commercial loans and are putting minimal pressure on companies who can continue to service the interest on their debts. According to the most recent TMA (Turnaround Management Association) survey, 60% of respondents expect to see banks as or more accommodating than... Read More
Comments (6)2-Minute Factory Assessment
This is an old trick my Dad taught me as a kid; go into any factory, close your eyes and listen ... Just listen to the noise.If it is a well-run factory you'll hear patterns in the noise. Patterns mean sequencing, which is the basis of all Lean manufacturing principles. A tightly scheduled plant will produce patterns in the noise.Then open your eyes and watch the feet. ... Just watch the worker's... Read More
Comments (5)Recovered Industry
Looking at the recent headlines I would say that part of the Gift/Décor industry is roaring back to robust financial health. - Gibson parent declares dividend- Peter Pauper Press launches UK Division- Midwest parent declares dividend- Yankee Candle Gains...- Brandwise makes Inc 500 list- Global Sources revenue rise 29%It sounds great but I think is more of the bifurcation I talked about last ti... Read More
Comments (0)Business Lending II
59% of business owners tried to get financing in the first half of 2010. That sounds like a lot to me and would indicate robust economic growth. Meanwhile Wells Fargo, Bank of America and JP Morgan Chase all report increased small business lending. With strong demand and growing supply we should have the solid economy we've been wishing for.The interesting part of the story is that credit... Read More
Comments (0)Business Lending 2010
I recently attended two different lender symposiums through the TMA to learn more about the struggling mid-middle market commercial lending environment. Step #1 in this process is understanding the Amend and Extend practice that many banks are currently following with their business credits. I wrote on this in a previous column but this guy does a better job of explaining it than I can. htt... Read More
Comments (0)Shipping Costs Going Up...
Container shipments are running late and expensive as we enter the busy holiday season. Although this should be an indicator of an economic recovery, it is more directly tied to the amount of ships taken out of service by major shipping lines. According to today's Wall Street Journal, national retailers struggled amongst late shipments at Father's Day and ship capacity has run tighter since the... Read More
Comments (0)A Tale of 3 CEO's
As we all know, things have changed and we are all coming to grips with the new reality of business post-2008. My friend is meeting with his bank later this month to renew his business's line of credit. His results are improved-to-steady and his strategic acquisitions in 2009 have paid off handsomely for his business. No problem right? Well, his former tenant also had a line of credit wit... Read More
Comments (0)Extend, Amend and Pretend
"Extend, Amend and Pretend" was the overarching theme at the recent Turnaround Management Association symposium. In short, this is what banks are doing with their troubled credits. Extend the loan, Amend the trip-wires to foreclosure and Pretend that this is a good idea.And really, who wants to face up to their issues? Apparently, not many banks in this economy. The stunning co... Read More
Comments (0)New Indian Sourcing Magazine
We all know that India has a bright future as a product resource for the gift and home industry. Their rise has been less meteoric as has China’s but India continues to adapt and deliver. Interestingly enough, I recently heard an explanation that because India is a democracy, they must evolve their economy and cannot simply arrive at capitalism via fiat. As China pushes their future towar... Read More
Comments (0)Focus and Growth.
March 2, 2010 – Wall Street Journal I love reading about folks who do things differently and enjoy great results. Rag and Bone Bindery grew 27% in 2008 when they cut staff, fired their 35 independent sales reps and let their smaller customers fall to the wayside. http://www.ragandbone.com/blog/ How – FOCUS. Doing fewer things better, selling less products and fewer customers deeper. They... Read More
Comments (0)Growth in Specialty Retail
We’ve all felt the resurgence in specialty retail and now the results are showing. Leading Investment Bankers for our industry; Tully and Holland, report that many specialty retailers are getting more financing, higher valuations and investor backing like we haven’t seen in many years. As you might imagine, this does not hold true for every company. Investors are willing to put money where they... Read More
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