When the Going Gets Tough, Turnaround Specialist Jay Alix Gets Busy

AlixPartners is a specialist's specialist. Back in the 1980s, the Southfield (Mich.) firm pioneered consulting to companies in or near bankruptcy, a niche it still dominates. These days, that obscure specialty has become one of the hottest areas in consulting, and Alix, with a client roster that includes WorldCom, Kmart, and an Enron partnership, is riding high.

While most management consultants focus on long-term strategy, AlixPartners' mission is more immediate. It jumps into crisis-ridden companies and looks for ways to maximize value for investors and creditors. Often, that means shedding assets or restructuring operations. But sometimes, it means preparing the company for sale. Alix led successful restructurings at National Car Rental System, Oxford Health Plans (OHP ), and Zenith Electronics. It's now working for an Enron Corp. partnership to try to recoup money lost by investors. At Kmart Corp. and WorldCom Inc., Alix principals have temporarily signed on as executives to help move the companies out of bankruptcy. "They are one of the premier go-to firms for people who have money at risk," says William C. Repko, a managing director at J.P. Morgan.