Tropical Sportswear Int'l Corporation announced that its Board of Directors has concluded the review of strategic alternatives that began with the appointment of Merrill Lynch on June 2, 2003.
The Board of Directors has determined that it is in the best long-term interest of the Company, and the best alternative for increasing shareholder value, that the Company continues pursuing its present strategic business plan.
The Company also announced several changes in senior management and the Board of Directors. Eloy S. Vallina-Laguera has been appointed Chairman of the Board, succeeding Michael Kagan, and Mr. Kagan has been appointed Chief Executive Officer and will remain a member of the Board of Directors. Mr. Vallina has been a member of the Board since 1989. Mr. Kagan was appointed as a director and Chairman of the Board in November 2002. Prior to that appointment, Mr. Kagan had been a director and the Company's Chief Financial Officer from November 1989 until his retirement in August 2002. Mr. Kagan has over 30 years of apparel related experience.
The Company also announced that Richard J. Domino will become President and Robin J. Cohan will become Chief Financial Officer and Treasurer. Mr. Domino has been with the Company since 1988 serving in various capacities, including as President of the Company's private brand division. Mr. Domino has over 30 years of experience in the apparel industry. Ms. Cohan has been with the Company since March 2000 serving as Senior Vice President of Finance. Ms. Cohan is a C.P.A. and has over 10 years of experience as a financial executive for public companies. Ms. Cohan also spent 5 years in public accounting with PricewaterhouseCoopers.
The Company has decided to terminate the employment of Christopher B. Munday, the former President and CEO, N. Larry McPherson, the former Executive Vice President and CFO, and Gregory Williams, the former Executive Vice President and General Counsel, each effective August 15, 2003. Michael R. Mitchell, the former President of the Savane division, has agreed to step down and pursue other interests, also effective August 15, 2003. The one-time charges associated with the management changes will be reflected in the fourth quarter results.
Mr. Kagan commented “we believe that we can better enhance long-term shareholder value by remaining independent and restructuring the business. The former management team had initiated and completed a number of positive changes in the business and these additional structural changes will further streamline the business by focusing the operations under one well-qualified president. We are getting back to our core operations, and these are the additional steps we need to take in getting there.”
