Holy crap: Mark Bozek is out as CEO of Evine Live. We guess that will put a damper on the network’s first anniversary celebration this weekend!
But seriously, we are never happy to see anyone lose their job, especially since we were unemployed for two years after being laid off. And we like some of Bozek’s initiatives. But obviously his board didn’t, and the fact the stock is trading at $1 is not good news for investors.
We were lying in bed this morning checking our email when we saw the Evine Live press release, “EVINE Live Inc. Announces Changes in Senior Management, Bob Rosenblatt, Chairman, Named Interim CEO” and popped up to write it up.
The mini-bloodbath includes the exit of Russell Nuce as executive vice president, chief strategy officer, interim general counsel and corporate secretary. Evine Live said that it named HSN veteran Rosenblatt to the CEO post after after “Mark Bozek’s decision to step down as Evine Live’s Chief Executive Officer and as a member of the Evine Live Board.”
Rosenbatt will serve as interim CEO while the network searches for a permanent replacement for Bozek. The company has hired Korn Ferry, a national executive search firm, to help identify candidates and will consider both internal and external candidates.
We’re sad to report that right off the bat Rosenblatt was in management-speak mode, talking about how well-positioned Evine Live is. If it’s in such great shape, why did it just show Bozek the door?
“Evine Live could not be better positioned for the future,” Rosenblatt said in a canned statement.
“We will bring an even greater focus and discipline to Evine Live’s merchandising strategy, margin profile, and execution to deliver profitable growth and shareholder value. With Evine Live’s assets of cable distribution, a strong merchandising organization, deep knowledge of our customers, a new fulfillment operation, the overall trends in e-commerce, and video now being the prime driver of content consumption at home, work and via mobile, Evine Live is really in the right place at the right time.”
Rosenblatt added, “I look forward to working with the team to continue delivering products and experiences that attract customers and win a greater share of wallet. Our team members remain our greatest asset, and together, we stand well positioned to execute on our strategic objectives.”
Here is Landel Hobbs, Evine Live’s vice chairman, canned statement on the management shakeup.
“We are pleased to have someone of Bob’s caliber and expertise taking on the role of interim CEO,” he said. “With his profound knowledge and experience in both e-commerce and televised shopping businesses, and the in-depth understanding of all aspects of Evine Live gained during his tenure as Chairman, Bob is the natural choice to lead the Company through this period of transition. The Board appreciates his willingness to take on this expanded role and looks forward to working closely with him.”
Mr. Hobbs continued, “On behalf of the Board, I want to thank Mark and Russell for their contributions to Evine Live. We are grateful for Mark’s leadership during a dynamic period in the Company’s history.”
In a separate announcement issued Monday, Evine Live provided preliminary fourth-quarter 2015 results. And we guess they were a contributing factor to Bozek’s departure.
Net sales are expected to be between $209 and $212 million. Gross profit as a percentage of net sales expected to be between 31 percent and 31.6 percent. Adjusted EBITDA expected to be between $4.9 million and $5.4 million. Net income, namely profits, are expected to be between zero and $500,000. Earnings-per-share are only expected to be as high as ONE PENNY!
Total cash, including restricted cash, at year end is approximately $12 million with an additional $28 million of availability on a revolving credit facility with PNC Bank
The home shopping network will release its fourth quarter and fiscal 2015 results March at 6 a.m. ET before the market opens. Rosenblatt and Tim Peterman, chief financial officer, will hold a conference call at 8:30 a.m. to review these results.
Here is Rosenblatt’s resume:
Bob has more than 25 years of leadership experience at a number of leading retail organizations, including Tommy Hilfiger, HSN (formerly the Home Shopping Network) and Bloomingdale’s. During the end of 2012 through mid-May of 2013, he was Interim President of Ideeli.com, a flash sales company based in New York that was sold to Groupon.
As Group President and Chief Operating Officer of Tommy Hilfiger Corporation, he grew revenues and profitability and built the company’s first transactional web site. Mr. Rosenblatt co-managed the process which culminated in the Tommy Hilfiger Company successfully being sold to Apax Partners in 2006.
Mr. Rosenblatt also previously served as Chief Financial Officer, Chief Operating Officer and President of HSN. Mr. Rosenblatt introduced and built HSN’s online operation, which achieved profitability within three months of inception. As Chief Financial Officer at Bloomingdale’s, Mr. Rosenblatt was responsible for financial reporting, financial planning and administrative management.
For the past nine years, Mr. Rosenblatt has been the Chief Executive Officer of Rosenblatt Consulting, LLC, which specializes in helping investment firms determine value in both public and private companies in the consumer products sector, as well as helping retail firms maximize profitability.
Mr. Rosenblatt currently serves or has served on several public and private boards in the retail and technology industry including PepBoys (NYSE:PBY), RetailNext, Newgistics, ERA (Electronic Retailing Association) and I.Predictus. In addition, Mr. Rosenblatt previously taught at FIT (Fashion Institute of Technology) as an Adjunct Professor.