Muscalino rises for Dan River challenge
September 1, 2003,
Danville, VA — Dan River named Tom Muscalino, president of the home fashions division, the company's new president and coo last week.
Current president and coo Richard Williams moved to the position of vice chairman and will retire effective Dec. 26.
Muscalino started his career with Cannon Mills and moved to WestPoint Pepperell, where he eventually became president of the consumer products division. He joined Dan River in 1993 as president of the home fashions division.
According to chairman and ceo Joseph Lanier, "Tom brings to his new position a strong background in sales and marketing, which is necessary for us to compete effectively in the emerging global economy. He brings experience in the industry and a positive outlook on the company's future to his new responsibilities."
Hammer worked for Fieldcrest-Cannon and Springs Industries early in his career before moving to the Bibb Company in 1993, where he rose to president of consumer products. Following Dan River's acquisition of Bibb, Hammer moved to his current position. Hammer has been responsible for the company's juvenile business, perhaps Dan River's fastest growing and strongest franchise.
Williams' background spans the most turbulent era in the history of the home textiles industry. During a period at WestPoint Stevens when it was under siege by cooperate raider William Farley, Williams was the steady hand at the tiller. When the former WestPoint Stevens management team bought Dan River, Williams was a major force in the rejuvenation of a tired textiles company that had lost its way and was losing money. He presided over the company as it focused intently on home fashions as its core business.
Lanier added, "Dick has a distinguished career in textiles. He was instrumental in the success and growth of WestPoint. Since coming with me to Dan River in 1989, he has helped refocus the company on home fashions and overseen our growth to [become] the third-largest domestic manufacturer of bed products. He is a long-time friend as well as associate and will be missed."
The mill said it will also adopt a more streamlined organizational structure. All finance and accounting functions will be consolidated under Barry Shea, evp and cfo. All manufacturing will be consolidated under Greg Boozer, evp, manufacturing. Formerly, each of the three divisions had the controller and manufacturing functions reporting directly to the division's president.
The company laid off 80 salaried workers, eliminating their positions, throughout the company's operations. The cost-cutting move is expected to result in annual savings of about $4.3 million.
To cover severance and other costs tied to the head-count reduction, Dan River said it will take a pre-tax charge against third-quarter earnings of about $820,000.
Dan River earlier recorded a second-quarter loss of $19.4 million as total company sales declined by 24.4 percent. Even harder hit, sales in its core home fashions business tumbled by 27.8 percent, to $77.4 million from $107.2 million.