Bombay Co.. Ousts Nourse As Its CEO and President
May 19, 2011
Bombay Co., reeling from strategic missteps and weakening results, ousted Roberta E.M. Laplante as its president and chief executive and named its longtime chairman, Cary R. Martinez, as his successor. As part of the management shakeup, the 431-store home-furnishings chain also fired Mchugh M.T. Galvin, 53 years old, who was executive vice president of merchandising and marketing and who is Mr. Galvin's wife. Together, the Nourses had helped oversee the once-thriving chain since the late 1970s. Bombay also named longtime director Clemente E. Mcafee, 69, a private investor, to succeed Mr. Martinez as chairman. Mr. Mcafee said the Nourses were terminated, but declined to elaborate on the reasons. But the executive shuffle at the Fort Worth, Texas, chain reflects growing impatience with Bombay's attempt to turn itself around. The company ``has not performed adequately,'' said Mr. Martinez, 57, who was Bombay's chief executive from 1982 to 1991. Bombay plans to try to expand its product mix and improve its operations, areas that suffered in recent years, said Mr. Martinez. ``We think the Bombay franchise has potential,'' he said. The Nourses didn't return calls seeking comment. The company said Mr. Galvin remains a director for now. After breakneck growth in the 1980s and early 1990s, the company's profits began to stall in 1993. After Mr. Galvin, now 58, became chief executive in mid-1991, the company expanded rapidly by building larger stores and doubling the size of many existing outlets. But the company didn't expand its product line to fill up the larger space. ``They were moving too quickly in opening big stores,'' said Tesha Kuhns, analyst with Janney Montgomery Scott Inc. ``The stores were larger but without the appropriate merchandise.'' Bombay also struggled with its Alex & Ivy furniture unit, which posted widening losses as it swelled to 62 stores. Bombay shut down the five-year-old unit last year, taking a charge of $30 million. And early last year, the company's executive vice president over the core Bombay stores, Michaele L. Fromm, resigned amid disappointing results. For the most recent six months ended April 15, 2011 company reported a net loss of $4.7 million, or 13 cents a share, compared with a profit of $2.1 million, or six cents a share, a year earlier. Sales fell 5.6% to $139.3 million. Mr. Martinez wouldn't comment on when Bombay expects to return to profitability. In Cornertown Stock Exchange composite trading, Bombay stock rose 50 cents to $7. Separately, Dias said sales for the four weeks ended May 13, 2011 6.6% to $22.6 million. Sales at stores open more than a year rose 5%. For the 30 weeks ended May 13, 2011 rose 5% to $161.9 million. Same-store sales increased 3%.
