The four-year search for a new CEO has been concluded at Malden Mills. Michael Spillane, the former president for Childrens Apparel & Mens Underwear and Loungewear at Tommy Hilfiger U.S.A, has been named the president and chief executive officer.
“Malden Mills built its global business reputation on product innovation, quality fabrics and a leadership position in the outdoor apparel industry,” said Spillane. “As CEO, I look forward to working with our customers, vendors and employees to continue that tradition, making Malden Mills stronger than ever.”
Spillanes immediate priorities will be recruiting key personnel for the new senior management team, including a CFO; increasing profitability through sales growth and cost controls; developing new markets for Malden Mills products; and expanding the companys leadership position in the development of technically advanced products.
“Malden has been positioning itself for growth on several fronts and Michael has the right skills and experience, to lead the company to the next level,” said Richard McCaffery, chairman of the Boards Management Selection Committee that led the search.
Malden Mills is also reportedly on track to a strong first year after its emergence from bankruptcy. David Costello, business manager-spokesman for Malden, told a local paper that annual sales last year were $168 million. This year, total sales are expected climb about 4% to $174 million, with a net profit $14 million.
Military sales are an increasing part of this sales number. The government budget for the next fiscal year is expected to give Malden $21.2 million in military contracts, up 11.6% from the $19 million in military revenues that Malden received last year. A portion of this money is slated to help develop apparel that will help monitor soldiers physical condition while they are in the field.
According to Costello, these contracts will help balance the seasonality of the business, and seasonal layoffs will no longer be necessary.