KushCo Holdings Moves to Reduce Costs and Names Stephen…
Posted On March 26, 2020
- As a result, we have taken quick and decisive steps these past six months, and especially these past few weeks, to significantly reduce our overhead, streamline our warehouses, reduce our inventory, and drastically alter our sales strategy and resources to rely even less on the smaller operators, while doubling down on our efforts to solidify and strengthen our core base of large MSOs, LPs, and leading brands.
- The Company’s new strategic plan includes: Focusing deeper on larger and more financially stable MSOs, LPs, and leading brands (the Core customers): The Company’s customer base has gradually shifted in the past few years from predominantly smaller and regional operators (Legacy customers) to financially stronger and more creditworthy MSOs, LPs, and leading brands (Core customers).
- Following the full execution of its plan, which the company expects to complete before the start of its fiscal 2020 in September, the Company expects its quarterly SG&A expenses to reduce to $12.5 million in fiscal Q4 2020, which is a decrease of approximately 40% compared to its SG&A expenses in fiscal Q1 2020.
- Mr. Christoffersen has served as KushCo’s Executive Vice President of Corporate Development since November 2018, where he oversees and manages the Company’s business development functions, including expanding KushCo’s hemp trading and retail services divisions.
- Mr. Tedford had been serving as KushCo’s Chief Financial Officer since November 2018, and played an instrumental role in bolstering the Company’s financial and risk management capabilities, treasury management, and strategic financial planning and reporting.
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