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What is Business Turnaround?
When a qualified professional is called in to assess an underperforming business and develop a strategy to improve business and avoid insolvency. There are many tactics that are used to develop a business turnaround plan.
“In significant financial and operational distress; the club faced imminent closure unless a resolution could be reached. Clubs play a vital role in our communities. Together, we were able to help this club identify ways to take back control of its future.”
Chad Rapsey (Co-founder / Director)
A NSW registered club was investigated by the Office of Liquor Gaming and Racing (“OLGR”) as a result of various breaches of the relevant law. A report prepared following this investigation identified the urgent need for the club to be administered by an independent third party. Rapsey Griffiths were appointed as temporary administrators to urgently assess the Club’s operations and determine its future.
Overall the Club was in crisis mode. The report from OLGR revealed significant financial and operational distress, with the club facing imminent closure unless a resolution could be reached.
Acting swiftly, Rapsey Griffiths implemented a turnaround plan which included:
- Implementing a crises management plan
- Establishing a robust financial function
- Identifying and engaging with stakeholders
- Establishing new operational processes and transitioning a new management team
- Facilitating the appointment of a new board of directors
- Arranging new leadership and training
- Refocusing the Club’s strategy
The entire process took approximately five months from start to finish. As a result of engaging Rapsey Griffiths, the Club returned to profitability and was able to meet the conditions for legal compliance. The benefits of this successful turnaround were felt by the Club as well as the local community.