Situation: The client company was a 42-store franchise
and company store operation. The major factor in this situation
was that the fad of owning and wearing sports logo clothing was
losing popularity. The company continued to lose money for an extended
Results: Corporate Smoke Jumpers personnel were
retained to terminate the situation. In this situation, stores and
franchise businesses with value were sold. Twenty-two non-profitable
stores were closed. A $6 million net operating loss was merged into
other companies held by owners to yield a $2.5 million tax savings.
Settlements were negotiated with creditors for 20 cents on the dollar.
The owner's interest was protected and a bankruptcy filing was avoided.
Industry: Fantasy Sports Operation
Situation: Prime Sports Interactive, an Internet
based fantasy sports business, was reduced from losing $5 million
a year to a clean shut down.
Results: Corporate Smoke Jumpers reduced employees
from 45 to 6 and finally closed the operation. This included handling
the termination of the employees and the disposition of the accounts
payable, receivables, and general shut down of the operation. This
benefited the owners by relieving them of the tasks associated with
the shut down.