Harry & David Bring in Turnaround Pro

TROUBLED FOOD GIFTS MERCHANT HARRY & DAVID HAS BROUGHT IN A TURNAROUND SPECIALIST AS ITS NEW CEO. Kay Hong, a managing director at global turnaround specialist firm Alvarez & Marsal, was appointed chief restructuring officer on Feb. 18, and will also serve as Harry & David’s interim CEO.

Steven Heyer, who replaced Bill Williams as Harry & David’s CEO last February, will retain his position as chairman of the company.

Hong served as an officer at Spiegel and Movie Gallery and as a financial adviser for Eddie Bauer Holdings, London Fog Group, Lululemon Athletica and the secured lenders of Legacy Estates Group.

Can Harry & David be turned around? The company is facing an estimated $7 million interest payment on March 1 on its senior unsecured notes, and a substantial scheduled debt maturity in 2012 when its $58 million senior unsecured notes mature.

“We believe that Harry & David’s current capital structure is unsustainable and that the company will seek to restructure its balance sheet,” Standard & Poor’s analyst Mariola Borysiak said in a report. “In our opinion, this could lead to a selective default or a filing for protection under Chapter 11.”

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.