Strouds looks to turnaround specialist
January 22, 2001-- Home Textiles Today,
CITY OF INDUSTRY, CA — Taking the next step in its restructuring strategy, Strouds has appointed Thomas Paccioretti president and ceo, succeeding John Brincko, who had been interim president and ceo since September.
Paccioretti, who was called a Certified Turnaround Professional in a company statement, has been actively involved in the direction and operation of Strouds since the company began its voluntary restructuring under Chapter 11 on Sept. 7.
But even with this announcement, some analysts are not sure what Strouds' next step should be. Consumers have set Bed Bath & Beyond, or even The Great Indoors, as the standard for this category, said Joan Bogucki, vp, research, Wedbush Morgan Securities, Los Angeles. "They could do a total transformation of the company, but their box is too small for that category." She added that "Strouds has been criticized for that" because it results in a narrow product mix.
Strouds closed 13 stores in the latter half of December, according to its September filing. Four more stores are scheduled for closure by March.
With more than 12 years of experience in crisis management, interim management and reorganization engagements, Paccioretti is a senior vp of Brincko Associates, which advises financially troubled companies and their investors.
Paccioretti has assumed senior management positions in turnaround situations within a variety of industries including retail, distribution, insurance, hospitality, construction, computer software and agriculture.
"Tom Paccioretti brings to this position an extensive background in corporate turnarounds and retail management, and we look forward to the benefits of his expertise as Strouds moves forward in the next critical phase of its voluntary restructuring under Chapter 11," said Bill Stroud, chairman and founder of Strouds.