Management Turnover as Change Agent

Wednesday, July 30, 2008

More Management Turmoil at Children's Place

The Children's Place PLCE (NASDAQ) continues to face management unease.  The company's CFO, Richard Paradise, who has been in his job for less than one year, announced he would be leaving August 1, to pursue another business opportunity.  He joined the company back in November 2007.  Paradise joined the firm soon after the company's former CEO and largest shareholder, Ezra Dabah, was pushed out of his job.  

Since the CEO change at the firm back in September 2007, the company has faced a number of  executive changes and growing financial pressures (see earlier blogs). Dabah, despite being out as CEO has taken steps to try and take over the firm.  According to Reuters,
Children's Place has been weighing a possible sale of the company under pressure from its largest shareholder, board member and former Chief Executive Ezra Dabah, who owns a 17 percent stake in the company.
After a difficult period following Dabah's resignation as CEO, the company has managed to stabilize.  Paradise's resignation announcement raises another potential red flag.  Susan Riley, the EVP for Finance and Administration would takeover Paradise's position and would continue to perform her other responsibilities.  

Keep a close eye on the company.

For more:

No comments: