In 2005, Anna Amphlett and Andrew Ferris established Aussie Pies produce and distribute authentic Australian meat pies after seeing the popularity of pot pies on a visit to Australia. Seattle's Pike Street Market was selected as the location of the first store, because it was a favorite destination for foreign tourists who were willing consumers new and exotic foods. After the start of aggressive sales and marketing efforts, as well as introduction of new products, the Australian Pies quickly grew from one store and sales of $ 6 million in 2006 to 10 stores and sales of $ 10.35 million in 2009. However, the rapid growth in income is accompanied by declines and significant increase in accounts receivable, inventories, and capital investments in new stores. As a result of cash outflows were financed by increased borrowing from the Bank of America, and stretching payables of the company, which is more time to pay suppliers. Bank of America reluctantly increased the maximum amount available to the Company in accordance with its term loan to $ 3 million to $ 2 million. In early January 2010, Jan Muska, chief financial officer, was sure whether the new credit line will allow the company to implement its growth strategy to open five new stores in 2010.
This study Thunderbird Case. "Hide
by Graeme Rankine Source: Thunderbird School of Global Management 6 pages. Publication Date: November 8, 2007. Prod. #: TB0089-PDF-ENG
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