Collective Brands Inc.’s Chairman and Chief Executive Officer Matt Rubel resigned last week and a search for a permanent replacement was launched.
Michael Massey, a 15-year veteran at the company, was named the interim CEO and Scott Olivet became non-executive chairman. Massey, who currently heads international growth and overall business development, informed the board that he does not wish to be a candidate for the CEO position. Olivet, a former Nike exec who was most recently CEO of Oakley, has been a member of Collective board since 2006.
Rubel’s resignation comes after several years of underperformance by the company, dragged down by weak traffic at its Payless chain. Continued high unemployment and rising gas and food prices on the chain’s target customers, particularly African-Americans and Hispanics, have impacted Payless. Along with higher product costs, first quarter earnings fell 49.6 percent to $28.2 million, or 42 cents a share. Revenues dipped 1.0 percent to $859.0 million. The Payless weakness offset strong sales at Saucony and Sperry Top-Sider. Last week, Standard & Poors lowered its outlook on the company.
Rubel became Collective’s CEO in mid-2005 after running Cole Haan.
PSS also added the presidents and CEOs of its three business units to its governing executive committee, including LuAnn Via, president and CEO of Payless ShoeSource; Gregg Ribatt, president and CEO of its Performance + Lifestyle Group; and Bruce Pettet, who heads Collective Licensing.
