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Posted by goditac499 on October 3, 2024 at 7:10am 0 Comments 0 Likes
Unfortunately, the rapid rise of the business meant that woefully stressed systems and personnel lead to quality lapses which resulted in several large customers leaving for competitors. Additionally, two management team members left the company and started a competing business. They took other customers by offering cheaper prices for similar services. Hurried investments in capital equipment that were designed to reduce labor costs were being run inefficiently and had resulted in large increases in supply expense. HVAC service was now losing money and needed to make changes quickly in order to right the ship. Additionally, the company's current bank debt needed to be refinanced in order to alleviate cash flow concerns.
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