Putting People Before Profits: Classic PR Case Study

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Project Infomation

  • Client : Insight Studio
  • Date : 20 Feb, 2018
  • Skills : Project Planning

Challenge & Solution

The fire came just two weeks before Christmas, affecting employees both financially and emotionally. So just 2 days after the blaze, Feuerstein announced plans to pay his employees their full wages for 30 days. He would eventually extend that offer to 90 days for the paychecks, 180 days for benefits. Total cost to Malden Mills: $25 million.
A business fairy tale?
It would seem so. Unfortunately, the case doesn’t end here. Feuerstein found himself back in bankruptcy court, saddled with $140 million in debt, much of it tied to the rebuild. The company hired a new president in 2004 as part of the Chapter 11 reorganization. It wasn’t enough.
Did Aaron Fueurstein do the right thing in 1995?
After his decision, Feuerstein became a legend in both business and PR circles — a textbook case in excellence theory. But in the end, he leveraged the business into bankruptcy. No one will question Feuerstein’s good intentions, but there’s no line on the balance sheet for “loyalty” or “ethics.”
The business of business is messy.
Always has been. But we don’t often talk about the ugly side of it in our PR casebooks. Instead, we select cases that exemplify symmetrical communication, ethics and trust. And we celebrate them.

Our Process

01
Improve sales & operations & production planning
02
Determine the right inventory level
03
Optimize the supply chain for perfect order planning
04
Improve sales & operations & production planning

Result Driven

Reduced lead time by 43%
Decreased variability by 50%
Lowered the risk of back-order by 95%
Increased stock for finished goods by 10%