4.) Tuesday Mourning
(TUES - Get Report)
CEO is gone with the wind and for the sake of Lynyrd Skynyrd, we have no idea why.
Dallas-based discount retailer Tuesday Morning saw its stock sink over 13% to $7.80 Monday after it unexpectedly announced the resignation of Brady Churches from the company's top job. Tuesday Morning said Michael Rouleau would serve as its interim CEO, overseeing the chain's 830 stores while it searches for a permanent replacement.
Churches assumed the CEO position merely six months ago when the company's stock was trading just under $6. The shares had risen under his leadership almost 60% to more than $9 prior to Monday's collapse. Net sales at the company were also heading in the right direction with Churches at the helm, rising 4.5% to $285.3 million in the second quarter of fiscal 2012.
"After recent discussions, the Board and I have determined that this transition is in the Company's best interest. I am proud of the team's progress, particularly with respect to merchandising and new initiatives aimed at improving the overall guest experience," stated Churches in the press release. He added that he plans to remain with the company as a consultant.
Well Brady, it's good to know you and the board had "discussions" before your big decision. Glad you guys were able to get together for a nice little chat. Warms our heart it does.
But do you really think this sudden announcement was the best way to let your shareholders in on your special conversation? After all that happened with the company's previous CEO Kathleen Mason, did you and your board buddies ever consider a reasonable power transfer as opposed to dropping a bomb on your shareholders?
Mason, in case you missed it, was fired by the board last June after her 12-year run at the company ended with a string of disappointing earnings reports and a depressed stock price. She later sued Tuesday Morning, saying that she was discriminated against after she disclosed her breast cancer. The company maintains that her case has no merit and her firing was lawful.
Yes, it's been a turbulent time in the corner office at Tuesday Morning. But still -- to borrow again from the great Ronnie VanZant -- the train rolls on.
We just recommend staying away until Tuesday Morning's brass comes clean about Churches' disquieting departure.
Far, far away.