UPDATE: Former Tuesday Morning CEO responds to management changes and firing
June 7, 2012-- Home Accents Today,
DALLAS --Tuesday Morning Corporation's former CEO, Kathleen Mason, responded to yesterday's announcement that she was "relieved of her duties" and that other management changes were made by the home furnishings retailer earlier this week.
"I'm surprised and disappointed," Mason said today in a formal statement. "The company has been profitable for 12 consecutive years. We have grown to 850 stores with 10,000 employees and 11 million loyal customers. Private Equity made over $700 million on Tuesday Morning with an investment of approximately $117 million. In addition, the company paid down over $250 million in debt and fees and now has no long term debt. I encourage the management team to undertake the strategic initiatives we had planned to improve sales and efficiency as Tuesday Morning moves into the next phase of development."
Dallas Morning News reporter Maria Halkias said Mason's departure took place the same day "a pair of Dallas activist investors asked to be put on the board and outlined the company's weak operating performance under Mason."
A Tuesday Morning corporate press release issued late yesterday said that on June 5, 2012, the company relieved Mason of her duties as president and CEO and commenced a search for a new chief executive. In connection with the transition, Michael Marchetti, 55, the company's executive vice president and chief operating officer, was promoted to president and chief operating officer and named interim CEO.
Melinda Page, the company's senior vice president-general merchandise manager was promoted to executive vice president and chief merchandise officer and Seth Marks, senior vice president of alternative sourcing and e-commerce, was promoted to senior vice president and chief marketing officer.
"The Board of Directors concluded it was the right time to transition leadership to a new executive who will guide the company through its next stage" Bruce Quinnell, the chairman of the board, said in the release. "We are confident in Mike, Melinda, Seth and the rest of the senior management team to help lead the company through this important transition."
The company also announced that Sheldon Stein resigned from the board of directors effective May 31, 2012, and that Tuesday Morning is revising its 2012 fiscal year guidance.
The company now expects net sales for fiscal 2012 to be in the range of $810 million to $815 million. Comparable store sales are expected to decrease by 3.2% to 3.9% and earnings per diluted share are expected to be in the range of $0.11 to $0.15 before costs associated with the replacement of the CEO. For fiscal 2012 capital expenditures are expected to be $15 million, and the retailer expects to increase total square footage by approximately 2%.
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