SOS also has often served as a Chief Reorganization Officer. SOS also provides interim management team personnel. Often, an owner or management team of a distressed company makes the wise, yet often difficult, decision to hand over the keys and let SOS sort out the problems. This allows the owner or management team to focus on their skill sets, allowing SOS to develop and align a new strategy for all the stakeholders: the owners, management, employees, creditors, suppliers, professionals, and government entities.
A business with eight locations was in financial and legal trouble, with elements of fraud flagged. By the time SOS came on board as the CRO, some of the client’s operations had shut down. Assets had been seized by a landlord and by the IRS. SOS quickly determined that the cost structure for the unique offering of the business was unreasonable. All cash was used to enter into leases and paid for leasehold improvements, with no cash to fund operations or to service the leases. The owner’s skill-set was not matched to the specific demands of the business. SOS took control of the downward-spiraling business and resolved to shut it down without creating any new victims. SOS was also able to get the owner a life after the failure of his business, resolve his legal liabilities, and focus him in a direction that tapped his core abilities, all the while maximizing the asset liquidation for creditors and unweaving seventy (70) parties and their attorneys from becoming entangled in the various pending legal battles.
A brand name casino was failing, with millions of dollars in deferred maintenance. The carpet was literally worn to the backing, the white ceiling was black from smoke, the facility in great disrepair, and the equipment decades old. SOS quickly got an unlimited gaming license and took over the management. The casino was made profitable. All deferred maintenance was corrected. The casino was then sold with the facility being leased as an income stream for the previous owner.