Eric Weston is an award-winning multimedia director a writer and a producer who has gained a lot of success and fame from the film business. Eric has maintained a continued survival in the garden retail business. There is a time that Weston got himself so close to bankruptcy, and he needed to come up with a survival strategy.
- How did Weston get himself so close to bankruptcy? What went right for Weston and what went wrong? What were the root causes for Weston’s failure? Overall, did Weston pursue a bad strategy or do a poor job of implementing a good plan?
Eric Watson business of garden supplies has been faced with some crises that have triggered the business to failure. These problems arose mainly due to poor methods of the strategies implementation and inadequate project management practices. This way, Weston has found himself in a dark struggle in his efforts to keep his business alive and operating. The company has had more expenses those revenues due to the weak economy. Eric has been struggling in his attempts to incorporate recent acquisitions that were bought at a very high price. The restrictions by the banker have converted the acquired loans to a complete work of division while Eric still believes that his suppliers still trust him. Eric does all he can to ensure that he owns his company. Thus he has gone to the extent of making individual guarantees to the bank to facilitate his loan repayments. This way Eric is at the bankruptcy hotspot because the expenses have surpassed the overall company production forcing Eric to embark to his own pockets to fund the business projects.
- Discuss Weston’s current situation on what he needs to do immediately to survive. Also, discuss what Weston needs to do over the long-term to survive. Options for the future include Liquidation, Chapter 7 bankruptcy, Chapter 11 bankruptcy, or continuing with his plan and negotiate with Shaw and suppliers.
In the current situation, Weston’s cash position is very pressing. Eric has been pushed to assess the liquidation value of the property in worries that it will not be a success. In this case, Eric has considered the possible strategies he can undertake to ensure that his dream to own his own business remains valid. The first move Weston should consider is looking for all the possible ways he can use to remove the bank debts. He can use his cash to clear the debts and embark on the business later on. On the other hand, borrowing more money from the banks will only force the company into a more critical condition. After that, Weston should get loans at low-interest rates that are payable within a short period. Additionally, it would be a better move to consolidate possible deals with creditors to buy time for the growth of the business.