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Bozek Resigns As EVINE CEO

Company stock now trading below $1 per share.

Mark Bozek is the latest CEO to depart from Eden Prairie-based EVINE Live Inc.
 
The company, previously known as ValueVision Media Inc., has long been a third place player in television home shopping behind QVC and the Home Shopping Network. Bozek, who had a mission to turn around the long-troubled company, only lasted 19 months at the helm.
 
According to a filing with the U.S. Securities and Exchange Commission, Bozek resigned as CEO and stepped down from the company’s board of directors on Sunday. Russell Nuce, the company’s executive vice president and chief strategy officer, also resigned on Sunday. The company’s board of directors appointed Bob Rosenblatt, chairman of its board of directors, as interim CEO effective immediately. The board has initiated a search to find a replacement.
 
The company’s stock dropped 73 percent throughout 2015. Within the last week, the price dropped below a dollar per share. On Friday, the stock closed at 94 cents per share. During mid-morning trading on Monday, the stock was trading at about 75 cents per share.
 
The company also announced preliminary fourth quarter results on Monday, forecasting net sales in the range of $209 million to $212 million, with net income somewhere between zero and $500,000. The company is slated to report its fourth quarter numbers and 2015 results on March 23. For the fourth quarter of fiscal 2014, the company reported revenue of $201.2 million and net income of $3.3 million.
 
Bozek was installed as CEO in June 2014 following a bruising proxy battle waged against the then-ValueVision by activist investors. But so far, the company’s revenue has seen only nominal gains while continuing to post losses. For the first three quarters of its fiscal 2015, the company reported aggregate net losses of approximately $13 million.
 
For the third quarter of fiscal 2015 (which ended October 31), the company reported $162.3 million in revenue, but a net loss of $5.2 million. While the company’s sales showed a slight, 3 percent uptick compared to the previous year, the losses were notably larger.
 
For EVINE’s fiscal 2014, the company reported a net loss of $1.4 million on $674.6 million in revenue.
 
Twin Cities Business took an in-depth look at the challenges facing Bozek in its October 2014 issue.


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