Enesco names top executives, loses NYSE stock listing
Staff -- Home Accents Today, 6/1/2006
The interim executives of giftware vendor Enesco were named to permanent positions, effective June 7. The executive appointments came two days before the New York Stock Exchange was to suspend trading of Enesco's common stock because of noncompliance with minimum standards.
Enesco's board of directors named Basil Elliott as president/CEO and Marie Meisenbach Graul as executive vice president and CFO. Both Elliott and Graul served in those positions on an interim basis since May 15 when Cynthia Passmore ended her turbulent term as president.
The New York Stock Exchange was to suspend trading of Enesco's common stock after the close of trading June 9.
Enesco expects its common stock to be quoted on the OTC Bulletin Board.
At midday June 8, Enesco stock was trading at 55 cents, having dropped 30 cents after the announcement was made. A month ago on May 9, Enesco stock was trading at $2, but has steadily dropped since that date.
Last September, the Itasca, Ill.-based gift and home accent vendor received notification it was not in compliance with the NYSE's listing standards for minimum average global market capitalization and total shareholders' equity. On Dec. 5, the NYSE accepted Enesco's plan for continued listing on the NYSE, subject to quarterly reviews.
The NYSE's current decision to suspend trading in the common stock was based on its determination Enesco had not made sufficient progress toward meeting certain material aspects of the plan.
"While we are disappointed to not be listed on the NYSE, our primary focus is to continue the progress of our operating improvement plan, including securing long-term financing and resolving all of our shipping issues," Elliott said. "Our over-riding mission is to drive positive change in the business to better position the company for long-term growth."
At the time of her resignation in May, Passmore was credited with making several contributions since she joined Enesco in October 2004. Anne-Lee Verville, chairman of the Enesco board of directors, said Passmore helped to focus Enesco by "eliminating the unprofitable U.S. Precious Moments business, initiating the operating improvement plan and working effectively with Jim Shore to grow the Heartwood Creek brand globally."
Passmore surprised a group of Enesco employees earlier this year when she revealed a personal relationship with Andy Rolfe of Keystone Consulting Group, an outside consultant hired to help turn Enesco around. At the time, the board stood behind Passmore, who also found support from Shore. The designer had settled a legal dispute with Enesco and agreed to a contract he can end if Shore is not satisfied with results of a change in Enesco's leadership.
Shore agreed to continue the strategic alliance with Enesco under its new leadership.
"I have worked with Basil for a number of years while he was with N.C. Cameron and am very pleased that he was chosen to become Enesco's president and CEO," Shore said. "I've seen his passion for product design and development. It's a common bond that we share. Basil is devoted to both my designs and the Jim Shore brand. I remain committed to Enesco to produce my work and give my full support and appreciation to the new leadership."
Verville said both Elliott and Graul were the board of directors' top candidates. "Basil's long tenure with N.C. Cameron & Sons, our Canadian subsidiary, and his deep knowledge of the gift industry, as well as Marie's financial and operations expertise makes each of them the right leaders for Enesco," she said.
