Restructuring / Turnaround Strategies Case Study

Chiquita Brands International: Turnaround Strategies

Abstract:
Chiquita Brands International is one of the largest producers and distributor of bananas in the world. In the 1990s, the EU regulations restricting banana imports into Europe hit the company hard as Europe had been its major market and it had invested heavily to increase production expecting an open market across Europe. Due to rising debts, despite divesting many of its businesses, Chiquita filed for bankruptcy in 2001. In March 2002, Cyrus Freidheim was appointed as the CEO and under his leadership, the company underwent a restructuring to reduce its debts and increase its revenues. However, Chiquita still faces the challenge of the new banana import regulations in Europe, which has been implemented since January 2006.

Pedagogical Objectives:

• To highlight the factors that enabled Chiquita to become one of the largest food companies in the world
• To analyse the reasons that forced the company to file for bankruptcy in 2001
• To discuss the various strategies implemented by Cyrus Freidheim that revived Chiquita
• To debate on the future challenges of Chiquita and whether the transformation plan would enable the company to overcome them.

Keywords : Banana fruit company; Environment pollution; Rain Forest Alliance; EU Regulations; Restructuring / Turnaround Strategies Case Study; Quota Restrictins; Corporate Social responsibility; Core Values; Code of Conduct; SA8000 Labour Standards; Social Accountability International; United Fruit Company; Banana exports