The press release sounded like a tearful farewell. you know the board did not have their heart in it. Therefore what compliance culture will they have in the future? To distract investors from executive malfeasance or what could be described as very bad judgement in the executive suite, the board signalled earnings and just came out and said we will beat expectations. Desperate tactic so that the stock does not drop. Actually they got a nice initial bounce north of $5.00 and then watched the stock slide off.
It is about the culture. Steve Odland was the head man for a long time. You have to believe his value system permeated the executive suite. Has all the cancer truly been removed? The competition is just licking its chops savouring an extra big lunch soon. Private Equity Capital is considering a take over because management is not that smart and needs a shake up.
Heidrick and Struggles is doing the executive search for a permanent replacement. If they call you do you really want to go to lunch?
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.
- Office Depot Chairman and CEO Odland resigning (dailycaller.com)
- Office Depot Chairman and CEO Odland resigning (sfgate.com)
- Office Depot CEO Odland to Step Down (dailyfinance.com)
- Office Depot Says Odland Resigned, Looks for CEO (businessweek.com)
- Office Depot CEO to Resign (online.wsj.com)
- Office Depot shares jump after CEO steps down (financialpost.com)
- Office Depot Settles Fair-Disclosure Charges (dealbook.blogs.nytimes.com)