JacobsRimell (A): Leading out of Bankruptcy

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JacobsRimell (A): Leading out of Bankruptcy

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Publication Date:
January 12, 2011

Source:
IESE

Industry:
Telecom

This FocusCase is about a young VC-backed technology company in the UK, trying to turn around from a near-death crisis. The company offered a technology related to the management of broadband access, VoIP and digital television (DTV) services to large TelCos and cable providers, but is on the verge of bankruptcy after they have unexpectedly lost two large contracts within a very short time. The VC firm is bringing in a new (first-time) CEO in order to see if it is possible to restore the company to a position of value and save the firm. However, the financial situation of the company is extremely bad and immediate actions need to be taken. The situation is further complicated by the fact that the founder and former CEO remained in the firm and still enjoys a strong lobby, while the new CEO is perceived as the “bad cop” whom everybody tries to avoid. With not much time left, important decisions about the new strategy need to be taken…and this decision will influence all other actions, including who will have to leave the company, how the new sales process should look like, and how to position the firm for the future.

Copyright © 2021 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

JacobsRimell (A): Leading out of Bankruptcy

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