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 time.

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.