Jacques DePaul

The case describes an ethical dilemma involving Jacques DePaul, a restructuring expert who is a partner with the turnaround consulting firm Novum Partners. Faced with the acquisition of a restructuring case, ChezNous, he has to decide whether to follow the guidelines set by his partnership or to adapt the terms of the engagement in keeping with the situation of the company and its stakeholders. ChezNous is a multi-billion-euro retailer based in France that is facing severe liquidity problems. The company's lending banks are looking for a Chief Restructuring Officer to conduct and execute the restructuring program. Jacques is a highly respected restructuring expert who works at the U.S.-based turnaround consulting firm, Novum Partners. Novum wants to expand its European operations and feels that this case could be an interesting opportunity. The case is risky, however, since the restructuring will result in a significant reduction of the head count; the French unions and the press will be observing the case carefully. Novum's business model is different from that of its European competitors, particularly with regard to management consultants. The company works with fewer junior resources and assigns senior restructuring experts to serve as interim managers. The hourly rates are not much different from their competitors, but given the significant amount of time the senior experts spend on each case, the total fees are substantially higher than the competitors'. As a result, and in light of Novum being new to the European market along with the fact that ChezNous is very much in the public eye, Jacques has an ethical dilemma about whether he should take the case.