Client Situation
An 80-year-old retail grocery chain entered into a purchase agreement for the acquisition of stores that were being divested by two large competitors who were consolidating. Within a 90-day period, this increased the number of locations and size of the company nearly 10-fold to a $3+ billion business. The existing controller was leaving the company so an interim controller was needed to quickly step in and manage the accounting staff while assisting in the complex logistics of converting 146 new stores and integrating the accounting procedures of those operations.
Solution
A E78 team member was engaged as interim controller and within two weeks of the public announcement of the acquisition, assumed full management responsibility for the accounting operations and financial reporting for the existing stores. He also oversaw the third-party accounting services’ month-end close and reporting activities for the 146 newly converted stores. In addition, he represented the company’s CFO in troubleshooting operational issues in the conversion of inventory control, pricing, accounting, and new facility cost control.
Results
The E78 executive’s leadership in the store conversion/integration process of stores from three very different companies resulted in:
- Renegotiation of the third-party freight service contract, resulting in immediate billing corrections of over $350,000
- Establishing availability of real time work order reporting for facility operations managers
- Creation of a streamlined approval and payment process for contractor billings related to store conversion and build-out costs, to eliminate delays in store and pharmacy conversions
- Standardization of ordering and management processes for store supplies and spirits inventory
