The new owners of Eastern Mountain Sports (EMS) have dismissed its CEO Will Manzer and will relocate the New Hampshire-based outdoor specialty retailers distribution and other back-office functions to Connecticut in a costing cutting move that will eliminate 150 positions at the company in coming months.
The changes were unveiled late Thursday by Versa Capital Management, a private equity firm that acquired EMS from an investment group lead by J.H. Whitney in late November. On Thursday, Versa announced that it had folded EMS into Vestis Retail Group, LLC, a new retail platform it created to oversee EMS and, Bobs Stores, another retailer Versa owns that sells value-oriented footwear, apparel, work wear and accessories from 35 stores in Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island.
As part of Vestis, Bobs and EMS will share certain operational functions and enterprise resource planning (ERP) systems, but will remain separate and distinct retail brands in stores, merchandise and online. Vestis will be supported by a new $95 million revolving credit facility provided by Wells Fargo Bank, N.A. The company has more than 3,200 employees and nearly $500 million in revenue both online and through over 100 stores in 12 eastern states.
Mark Walsh, CEO of Bobs and a Versa principal, has been named CEO of Vestis, inclusive of EMS. Manzer has stepped down as CEO effective immediately and will serve as a consultant to Walsh during a transitional period. Working closely with Walsh to oversee EMSs day-to-day operations in Peterborough, NH will be Garry P. Herdler, interim CFO of Vestis. The B.O.S.S. Report was unable to reach Walsh to comment for this report.
EMS will eliminate 100 jobs by closing its distribution center (DC) and several other back-office support functions in Peterborough, NH and consolidating them within Bobs DC in Meriden, CT. Approximately 110 merchandising, product design, call center and web operations jobs will remain in Peterborough. All 68 EMS stores, which employ approximately 1,130 people in 12 states, will remain fully operational.
The consolidation is designed to improve EMSs operating efficiency, inventory management and capacity to invest in the continued development and success of its brand. Bobs and EMS will continue to pursue individual strategies focused on maximizing the potential of both businesses separately.
The steps we have taken at EMS are difficult ones, but we believe they are in the best long-term interests of the business, said Walsh, an avid skier. We thank all EMS employees for their hard work and dedication, and we are committed to supporting the affected employees in seeking new opportunities both within and outside of the company. Wills product and industry knowledge are superior, and he will be of great help to me as I work with the EMS team to ensure the strength of the EMS brand with outdoor enthusiasts. The Vestis platform will enable us to improve the operations of Bobs and EMS while growing each business independently with separate customer and brand strategies.
Manzer took the reins at EMS in 2004, after leading a management buyout financed primarily by the private equity firm J.H. Whitney. Though he had spent much of his career launching private label products for department stores, Manzer is a former marathon runner and competitive cyclist and struck out to restore the retailers legacy as a core outdoor specialty retailer. Under his leadership, the company revamped its real estate portfolio, recommitted to carrying hardgoods, added bicycles and ramped up the companys private label apparel business. He also became one of the outdoor industrys most vocal advocates on Capitol Hill and has chaired the Outdoor Industry Association (OA) since August. 2011.
EMS was already contending with stiff competition from REI and online retailers in 2011 when the warmest winter in New England history left it unable to sell large amounts of cold weather apparel, footwear and gear it had purchased for the 2011-12 winter season. That triggered a liquidity squeeze that ultimately resulted in the sale to Versa.
Reached by phone Friday, Manzer said he will serve out his term as OIA chairman until it ends in August. Manzer has no immediate plans beyond helping Vestis with the transition, although he said he would like to continue working with the outdoor industry and the conservation community. As someone who cut his teeth in the private label business, hes particularly interested in opportunities to develop and market new products.
Im a product guy first and I would like to open a company, said Manzer. But my future does not have weather dependency in it.
Versa Capital Management, LLC (Versa), a private equity investment firm has created Vestis Retail Group, LLC (Vestis), a new retail platform that comprises two retailers owned by Versa: Bobs Stores (Bobs) and Eastern Mountain Sports (EMS). 
Mark Walsh, CEO of Bobs and a Versa Principal (picture right), has been named CEO of Vestis, inclusive of EMS. Will Manzer has stepped down as CEO of EMS, effective immediately; he will serve as a consultant to Walsh during a transitional period. Working closely with Walsh to oversee EMSs day-to-day operations in Peterborough, NH will be Garry P. Herdler, interim CFO of Vestis, inclusive of EMS. 
Versas investment and active involvement have enabled EMS to continue as an independent retailer with opportunities for future growth, building on our long tradition of success in the outdoor category, said Mr. Manzer (pictured left). I have enjoyed my time as the leader of this great company, and Im ready to help Mark move EMS forward.
