Operational and financial expertise for businesses caught between suppliers and customers.
Distribution companies operate on thin margins with high working capital demands. When vendor terms tighten, customers delay payments, or inventory becomes obsolete, the financial pressure compounds quickly. Lighthouse provides the financial leadership and operational expertise to stabilize, restructure, or execute an orderly transition.
Distribution businesses fail in the gap between payables and receivables. We step in to manage that gap — renegotiating vendor terms, accelerating collections, rationalizing inventory, and giving management the financial clarity to make consequential decisions with confidence.
Retained as financial advisor to a food service and restaurant supply distributor.
Challenge: A $40 million distributor had reached a point of insolvency and required a managed closure to ensure PACA claims were addressed and a claims process established.
The Solve: Lighthouse was engaged to liquidate the company’s assets and address creditor claim issues. Lighthouse quickly developed a cash forecast and liquidation plan while providing transparent updates to all stakeholders and creditors.
The Outcome: Lighthouse secured an out-of-court negotiated settlement with its creditors which expedited the process and limited costs incurred.
How we stabilize distribution operations.
1. Working Capital Diagnosis: We analyze the full payables-receivables-inventory cycle to identify where cash is trapped, where exposure is concentrated, and where immediate action can free liquidity.
2. Vendor & Customer Management: We communicate directly with key suppliers and customers to preserve critical relationships while restructuring payment terms and delivery commitments.
3. Inventory Rationalization: We evaluate inventory for obsolescence, slow-moving SKUs, and liquidation opportunities — converting non-performing assets back into cash.
4. Path Forward Execution: We develop and implement the right plan — whether it's an out-of-court restructuring, a negotiated sale, or an orderly liquidation that maximizes recovery for all creditors.
The best outcomes start with early action.
The sooner we're at the table, the more options remain available. Reach out for a confidential conversation with our team