Her first goal was to stabilize the company and steer it back in the right direction. The company cut staff, sold its plane, and downgraded office space. It also refinanced $170 million in debt with European banks. Loida met regularly with managers to ensure that they were hitting their goals, and profits began to rise again. By 1994, earnings reached more than $11 million and topped $15 million the following year. “Loida’s contribution cannot be overstated,†says Savage. “She had just lost her husband, she’s got kids, and she jumped into his seat and did a fantastic job.â€
With the company back on track, she began to explore ways to unlock the value of the company. “My husband always said that he bought the company to create wealth, that was his ultimate goal,†she asserts. “So I always stuck by that goal.â€
Liquidation began in 1997, with the sale of its French food division. Then, it unloaded its European beverage operations, Spanish ice cream unit, and Irish snack business. Hundreds of millions of dollars were distributed to shareholders. By 2000, the liquidation of TLC Beatrice was complete, bringing to a close a momentous chapter in business history.
The Lewis Legacy
The TLC Beatrice example continues to inspire business leaders today. “Reggie was not afraid of going beyond what black business was, which was privately owned companies run by family members to be passed on to family members,†says Bob Johnson, chairman of the RLJ Cos., a $5 billion holding company. “He got access to public capital, which gives you leverage in deal making.â€
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