Profile of Success: A Victorious Resurgence

BACKGROUND: A former Marine, Dennis Garvey joined U.S. Cavalry in 2003 as part of a management team, created by the company’s then new ownership, to revive the business following a Chapter 11 bankruptcy protection filing in 2000. Since that time, backed by CEO Wayne Weisler, Garvey, who is the company’s COO, has led the company back, with average annual sales growth of about 30 percent since 2003. That growth has resulted in the construction of a new distribution center as well as the opening of a third retail store.

BIGGEST INITIAL CHALLENGES:

• Housefile deterioration: Although the company’s catalog production staff remained intact throughout the bankruptcy proceedings, employees and management in other key areas, such as circulation management and customer service, were either laid off or left the company on their own. During that earlier period, U.S Cavalry also was unable to cost-effectively mail its catalog.

• Loss of good faith relationships with suppliers: An obvious side effect of the bankruptcy filing was that many suppliers were hesitant to work with the company, Garvey says, even under new management.

HOW HE DEALT WITH THESE CHALLENGES:

• Reactivated old customers: Garvey and his team first identified the ideal U.S. Cavalry customer. He then sifted through the company’s extensive past buyer file searching for names to reactivate.

Garvey says that despite U.S. Cavalry’s past problems, the brand still carried a lot of respect with customers. Customers didn’t realize that the bankruptcy filing was the reason catalogs were only mailed sporadically for a few years; they were simply happy to be regularly receiving the catalog again, he says.

Along with renewed prospecting efforts, the reactivation campaign was a success, Garvey notes. Part of the company’s earlier problems was the inability to reach all the customers who were interested in its products. With a renewed catalog effort, the business bounced back.

• Rebuilt the
company’s reputation: U.S. Cavalry’s renewed focus on who its customers were helped fuel growth. That soon convinced most suppliers it was in their best interest to work with the company again, according to Garvey. Suppliers that initially were reluctant to come back on board realized that if U.S. Cavalry wasn’t working with them, it likely would work with rival vendors. Along with U.S. Cavalry’s renewed growth, Garvey used this leverage to bring back hesitant suppliers.

KEY TO SUCCESS:

Garvey’s first task was to rebuild U.S. Cavalry’s organizational structure. One of his major initiatives was integrating the company’s e-commerce and retail software platforms with the rest of the company’s enterprise management systems. Centralizing the purchasing and inventory control processes was essential to recharging the company, Garvey says.

BIGGEST CAREER CHALLENGE: Adjusting to the mentality of a fairly small business. Prior to joining U.S. Cavalry, Garvey spent most of his career working for a large global electronics distributor. He notes that in a smaller business, his actions have a greater impact on the bottom line.

Company founded: 1973
Catalog Established: 1975
Headquarters: Radcliff, Ky.
Primary merchandise: military and law enforcement equipment
# of SKUs: 50,000
Circulation: more than 100,000
Customer demographics: military and law enforcement, outdoor enthusiasts
Sales channels: retail 10 percent; direct (including catalog and Internet) 45 percent; contracts 45 percent
# of employees: 120
# of stores: 3