He Crossed the Line

Chapter 2 - Meeting LaTonya

I arrived a couple of minutes late, Atlanta traffic is a bear. I announced myself to the maître d and was led to the corner table next to the southern exposure window with a 32nd-floor view of downtown Atlanta looking towards Hartsfield Airport, barely visible in the hazy mid-day sky. Peachtree Vineyards appeared to be the place in town for power lunches, as evidenced by white table cloths, six-piece silverware set-ups, fancy crown folded napkins at each setting, a white shirt male wait staff, a snooty maître'd, and, of course, the predominantly male clientele in business suits. I got the 'once over' more than once as I followed the maître d to my table.

I was barely seated and had checked out the skyline view when the dull murmur of conversation and the clink of silverware suddenly silenced, and all eyes turned towards the entrance of the restaurant. Mr. Snooty, himself, came parading through the restaurant, leading a tall glamorously striking African American woman, wearing a navy business suit, red-white-blue pinstripe blouse, accessorized with a touch of red on the pocket square, French cuffs, pumps, and hand clutch. The woman's proud confident stride ignored the stares of the restaurant's male patrons though I had little doubt that she relished the undivided attention she received as she was led directly to my table. As she neared the table I heard a soft whistle from one corner of the restaurant, and I sensed a fleeting scowl in her eyebrow, but no other visible reaction.

Watching her approach, I thought, thank goodness I opted for the business suit over the jeans and boots today. When in Rome... I stood and offered my hand, "I'm Gina Girardi, pleased to meet you."

"Gina, how are you? It's a pleasure. I'm LaTonya." Shaking my hand. She added, "Welcome to Atlanta. I'm glad that you called and I appreciate the opportunity to talk." We ordered a glass of wine and chatted briefly about my trip, the weather, the growing Atlanta skyline, and abominable traffic. By that time the murmur conversation and tinkle of glasses and silverware had resumed. After placing our lunch order, I steered the conversation back to business.

"As you know, I've been retained by O'Rielly Electronics to look into the shooting of Sean O'Rielly," I began. "Some of the circumstances occurring here in Atlanta, and at Macon relating to the acquisition, and,... er, the closure of Smith Electronics may be related to the shooting. I'm hoping that you can add some key perspectives to these events."

"Certainly, I'd be happy to help in any way that I can."

"First of all, I'm sorry to learn that you were laid off when the Smith plant was shut down. Can you give me the twenty-five-cent version, a summary if you will, of the events relating to O'Rielly Electronics' acquisition of Smith Electronics and the events that followed?"

I learned that LaTonya had been hired as an assistant controller after a two-year stint in public accounting and receipt of her MBA. Within 18 months, the former controller, Darren Jefferson, who had been with Smith Electronics since the early '70s had retired, and LaTonya was moved up to the controllership responsibility. LaTonya quickly found that Darren had coasted his last few years into retirement leaving dated accounting systems and weak banking relationships. LaTonya had begun by installing a new computerized accounting software system with cost accounting modules, and all tie-ins to payables, receivables, general ledgers, production forecasting, inventory control, and a budget-forecasting accounting system. She also set about re-negotiating the firm's financial line of credit and scheduling a pay-down of a mortgage undertaken by Darren to finance an expansion of the Macon Plant in 2006.

I complimented her on the significant accomplishments that she had made in such a short time period. She nodded in acknowledgment and continued with an explanation of the business environment affecting manufacturing businesses in the current economy.

LaTonya began a description of the past year. The ups and downs of the economy had wreaked havoc on the firm's income, profits, and its ever-growing debt burden. Competition from the Chinese was intensifying, with more and more manufacturing moving to Mexico or overseas to Taiwan and China. LaTonya had worked with the Operations Vice President to identify and facilitate a joint venture in Mexico. The joint venture bode well for Smith's long-term positioning in the industry, but numerous production and logistical setbacks cut into profits. Lost sales and slow cash flow delayed the financing payback schedules, weighing down Smith's debt ratios. The Banks were screaming, and threatening to call in the note and pull the plug on existing finance packages.