Shareholders of Nautilus Inc. voted Tuesday on five proposals from activist investor Sherborne Investors LP, including one to give Sherborne control of Nautilus by giving it a majority of seats on the company's board. But Nautilus said the results of the special meeting won't be known for several weeks until an outside auditor counts the votes.
At the conclusion of Tuesday's meeting, new Nautilus CEO Robert Falcone told Puget Sound Business Journal (Seattle) that the vote remained a “dead heat.”
Gerard Eastman, the Sherborne representative at Tuesday's meeting, said shareholders remained “fairly supportive” of Sherborne's proposals. Sherborne owns roughly one-quarter of Nautilus.
Falcone, who became CEO in August, has made several significant moves in his short tenure, including laying off 9 percent of the company's work force and cutting expenses by more than $10 million annually. He's also implemented an inventory reduction plan that should pump $20 million into the company's coffers. Falcone also continues to look for a buyer for the company's Pearl Izumi fitness apparel business.
Sherborne's proposed turnaround plan revolves around returning Nautilus to its roots in direct marketing. Sherborne would also improve the company's supply chain management and focus on debt reduction.
