The damage done to Corporate Choice Limousines by increased operational costs and the recent trend toward decreased pricing in the Denver limousine market has necessitated the need for improved cost management and restructuring. While aligning the vision of the new Denver limousine entity with economic constraints placed on Denver limousine clients, the goal of the CLS accession is to develop services and pricing that conform to requirements of current users of Denver limousine services.
Plans for introduction of the new Denver limousine entity included several steps. In August 2008 two important steps were successfully implemented: firstly, formation of Consolidated Livery Specialists, LLC. Secondly, implementing plans for the winding down of the current Denver limousine entity; Corporate Choice Limousines. With the successful January 1 launch of of this new Denver limousine entity, Consolidated Livery Specialists intends to capture market share through aggressive pricing and a strategic business model. Andrew Pancroft, CEO of CLS Denver, admitted mistakes had been made in previous operations – review of the strategic shape of our Denver limousine operations came too late after the influx of former cab operators jumping into the Denver limousine luxury trasnportation market with inferior, cut-rate offerings. CLS Denver's new Denver limousine operations provide company management better opportunity to track industry trends and market fluctuations.
Thus far, in 2009, the accession and operation of the new Denver limousine entity has resulted in an increase of 11% over 2008 first quarter revenues of the Corporate Choice Denver limousine operations.
With the approaching close of its second quarter operations, CLS, Denver will evaluate its existing Denver limousine organizational structure and consider whether CLS as a whole would benefit from the accession of certain other operations. The determination, of which subsidiaries might accede, if any, has not been made yet and is still under consideration. Once the determination of the timing and scope of any further accessions is made, CLS will review fiduciary and other considerations that may contribute to future ventures.