Wolff Ost-Reisen GmbH -
a pioneer in Eastern Europe
The south German located Wolff began over 40 years ago to organize tours to neighbouring countries. After the fall of the Berlin Wall, the network was used for an unprecedented expansion. Wolff founded subsidiaries in major Eastern European capitals and the brand Wolff was associated with high quality. Due to an increasing number of tour operators in the domestic market as well as in the target markets, the margins came under pressure and the earnings turned negative. In combination with some failed investments this resulted in a negative equity, rapid action was necessary.
The owner Hartmut Wolff asked restructuring specialists to handle this critical phase of the company's history quickly and professionally. Following a detailed analysis, the key measures were defined quickly. In addition to closing down unprofitable branches, operational measures were introduced to increase the order backlog and thus the increase in revenues was successfully initiated.
With full order backlogs, the negotiations with banks went out positive, meaning a moratorium was agreed. After the operational measures were successfully initiated, the corporate structure has been revised and simplified. Thus, the balance sheet could be shortened and the equity portrayed positively.
The group controlling has been completely restructured in order to respond promptly and efficiently to changes, a key issue for future management decisions.
By working closely with the owner and the management, the turnaround results were astonishing. The project is an excellent example of good and close cooperation of management and employees with the restructuring team, which translates into a successful job completed in a short period - 6 months.