Case Study: Triumph’s Revival with Acumen’s Intervention
Introduction
Triumph, a renowned multinational lingerie brand, faced a critical financial challenge that led to the sale of its only European factory in Sacavém, Portugal. This case study details how Acumen, in collaboration with Gramax Capital, played a pivotal role in reviving the factory, ensuring its sustainable future, and retaining its workforce.
Background
The Triumph factory in Sacavém, operational since 1961, was put up for sale by the German group in August 2015 to avoid or limit redundancies. The factory’s sole focus was producing for Triumph, employing approximately 500 workers.
The Challenge
The primary challenges were to prevent the factory’s closure, safeguard the jobs of its employees, and transform the business model to ensure long-term viability and growth.
Acumen’s Involvement
Acumen found and secured a competent managing director for Gramax Capital’s newly acquired factory, Têxtil Gramax Internacional (TGI).
- Executive Search and Interim Management: Acumen was responsible for the search process, which concluded with hiring the CEO of TGI. This recruitment was crucial for leading the transformation of the factory and implementing the new business strategy
Strategic Actions and Investments
With the CEO at the helm, backed by the strategic insights and support from Acumen, several vital actions were taken:
1. Business Model Transformation:
- Transitioned from a single-client model to a multi-brand production approach, catering to various national and international brands.
- Expanded the market reach to include Germany, Austria, Spain, the USA, the Netherlands, and France
Investment in Modernization:
- Gramax Capital committed over one million euros to modernise the Sacavém facility.
- Investments included new machinery, professional training, and upgrades.
- This investment aimed to enhance production efficiency and capacity, making TGI one of the most prominent players in Europe for lingerie, shapewear, and swimwear
Outcomes
Increased Production Capacity:
- The factory now has an installed capacity of over 25 million minutes per year, positioning it as a significant player in the European market
Economic Impact:
- The modernisation efforts and strategic shift have stabilised the factory’s operations, secured its economic future and reinforced its role as an employer in Loures
Sustainable Growth:
- By diversifying its production lines and client base, TGI has mitigated risks associated with dependency on a single client and opened new avenues for growth and innovation
Conclusion
- The collaborative effort between Acumen Consulting and Gramax Capital laid the foundation for TGI’s sustainable and prosperous future. The case of TGI exemplifies how strategic interim recruitment and targeted investments can turn around the fortunes of a struggling enterprise, ensuring long-term viability and economic stability.
