Vitacost stockholder shakes up board
This article was originally published in The Tan Sheet
Great Hill Equity Partners, the largest holder of stock in Vitacost.com, will replace four company directors following a vote by Vitacost investors. An independent inspector of election confirmed the results July 21. Ira Kerker, CEO of Boca Raton, Fla.-based Vitacost, said, "The company's stockholders have spoken and we respect their decision." Great Hill offered its director nominees after communicating disppointment with the supplement retailer's flat sales growth and troubled manufacturing (1"The Tan Sheet" May 31, 2010, In Brief)
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Vitacost.com CEO Ira Kerker steps down and Jeffrey Horowitz takes the post after logistics challenges and a proxy fight shook up the company's board of directors
Boca Raton, Fla.-based Vitacost.com hires a financial advisor to help it identify "potential business combination partners and purchaser candidates." The May 20 announcement came five days before Vitacost's largest shareholder, Great Hill Equity Parnters, proposed four nominees to replace current board members. The shareholder explained the online dietary supplement retailer has experienced "significant erosion in stockholder value" since its 2009 initial public offering, according to a release. Great Hill attributes Vitacost's flat sales growth, high turnover and troubled manufacturing and logistics to "a board comprised of directors with little, if any, public company or Internet, eCommerce or direct marketing experience.
Recent executive changes in the industry include C-suite changes at Solid Biosciences and Merck & Co. Meanwhile, new directors were appointed at Allergy Therapeutics and Synairgen.