Leonardo’s strategy focused strongly on aggressive expansion until the third quarter of 2008. Due to the turmoil for global business and the unprecedented restriction of private consumption, this past business model had to be urgently overhauled and turned around, according to a press release sent to Business Standard.

Severely impacted by the economic crisis, the retailer has teamed up with Ensight Management Consulting, in order to master “an incisive turnaround program,” according to the press release. To accelerate the required change, Ensight set up a new organization, taking over the business management. Thus, Christian Bachmann, Principal - Strategy for Ensight, has taken over Leonardo’s interim management. Initially, all overdue taxes were paid to the Romanian state by the end of 2008.

The company’s sales management was improved, corporate restructuring management was tracked by ongoing cash monitoring. Furthermore, a comprehensive supplier debt postponing and re-negotiation program had to be launched in order to restore acceptable equilibrium, the press release writes. Meanwhile, some 30 low-profit stores of the total 175 units were closed, which led to the layoff of more than 500 of the 3,000 employees. Due to even worse market conditions in the first quarter of 2009, the previously agreed debt rescheduling became increasingly hard to comply with, so a consequence, in the form of a more incisive restructuring program was initiated. The process will continue, as the network is to be shrunk to less than 120-125 shops, according to the press release.