Classic Fixtures & Hardware Company is a nationally-known producer and distributor of kitchen and bathroom fixtures and trim, along with lock sets and hardware for doors and windows. The company is privately held and has limited access to capital markets, therefore it depends on financing facility with Southwest National Bank to finance its working capital needs that are seasonal.
Level production and seasonal sales result in loan balances and higher inventory levels in the first half of the year and declining inventory and loan balances in the second half of the year. In 2008, the loan balances of Classic have grown beyond forecasted amounts, and its particular CFO considers that Classic will unlikely be able to settle loan amount before the year comes to an end. The CFO and a senior loan officer hailing from Southwest both arranged a meeting to be able to ascertain both the reasons for this particular problem and what precisely Classic might do to turn itself around.
PUBLICATION DATE: February 05, 2015 PRODUCT #: 915523-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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