Wall ovens face a recall
Whirlpool is recalling a host of Jenn-Air Wall Ovens after a number of incidents were reported, including one burn injury.
According to the Consumer Product Safety Commission, the extendable roller rack can unexpectedly disengage when fully extended, which creates a burn hazard.
There have been eight reports of incidents so far, including one injury that resulted in a second-degree burn to the arm and back.
The recall affects about 33,000 Jenn-Air Single and Double Wall Ovens and Combination Microwave/Wall Ovens in the U.S., and about 8,000 in Canada. They come in stainless steel, oiled bronze, black and white, with the Jenn-Air logo affixed to the lower right corner of the oven door. The affected models have numbers that begin with JJW2, JJW3 JMW2 or JMW3 and a serial number beginning with a D or F.
They were sold at Sears, Pacific Sales and other stores nationwide, and by wholesalers, including Ferguson Enterprises, and homebuilders from March 2012 through June 2015 for between $2,500 and $5,000.
Advice on sale and succession
If you’re seriously considering the sale or transfer of ownership of your business, then now is the time to get your financials in order. Creating a plan now can ensure that your company will be positioned to make a profitable and successful transition when you’re ready.
Get started by looking at three key aspects of the transaction, their importance and how you can strengthen your company in each area.
1. Reducing risk and uncertainty
The Great Recession created huge, bad debts for most dealers. New buyers will want to be assured that the credit quality of the current customer base is strong. Otherwise, they may look to the bad debt historical data from the Great Recession as their expectation of how bad it could get in the next recession and discount their willingness to pay.
If you haven’t yet, now is the time to create a thorough credit assessment of your customer portfolio. Make sure your credit staff is using multiple business and consumer credit reports to evaluate customers’ credit quality and likelihood of default.
Your company’s cash flow will also be a priority for new leadership — the buyer needs to understand how much cash they’ll need to support operations after the sale. If your DSO is 45-plus days, then a potential buyer may need to tap their bank for operating capital — adding risk to the equation. Make improvements to your credit management and collections now, such as working to turn all customers into on-time payers.
2. Improving value
Like staging a home for sale, you want to put your business in the best possible light to maximize its financial value and attract the best buyers at the highest possible price. The value of your company includes such hard assets as property, inventory and buildings, along with the quality of your balance sheet.
Here are some financial red flags that can impact your company’s valuation:
- Lagging customer payment trends;
- Bad debt write-offs;
- Varying and undocumented customer credit terms;
- Inconsistent cash flow; and
- Reliance on bank loans and lines of credit to fund operations.
One of the best ways you can improve the value of your company is by cleaning up your accounts receivable. Transparent, easy-to-understand financials provide clarity to your operation and make it easier for potential buyers to understand where the company’s valuation fits when looking at similar sales.
3. Providing continuity
Fostering continuity can be an elusive but important aspect of any ownership transition. After all, a new owner will want to maintain many of the relationships and processes that have led to your success. Consider putting processes in place now that create stability and foster continuity before, during and after an ownership transition, such as:
- Maintaining consistency and professionalism in your credit and collections functions;
- Providing clarity and transparency of your company’s financial health, and setting realistic expectations for future credit risk and credit flow; and
- Assuring customers that established credit and collections functions and contacts will not change.
Transitioning ownership is a major undertaking, and you want to make sure it’s a success for everyone. Putting your financials in order now can help ensure that you’ll have a more profitable sale and easier change of ownership when the time is right.
Scott Simpson is president and CEO of BlueTarp Financial, which helps dealers grow and protect their business with professional credit management services.
Edible Garden products come to Stop & Shop
Edible Garden, a subsidiary of Terra Tech Corp, is bringing its naturally grown living produce to Stop & Shop shelves.
The urban agricultural products will be hitting 182 Stop & Shop grocery stores in the Northeast, with the first order shipping Wednesday.
"This is a huge success, we have been working for close to a year to get our products into Stop & Shop," says Ken Vande Vrede, COO Terra Tech Corp. "So many retailers are now in support of local farmers, helping create local jobs, and investing in their local communities, which has led to rapid Edible Garden brand expansion. The division is now cash flow positive and we are excited that our fundamentals are beginning to shape up. "
Edible Garden also recently achieved organic certification and is actively pursuing additional retail partners to fill out their new 5-acre facility, as well as the facilities of their cultivation partners in Florida and the Midwest.