Tuesday Morning CEO resigns, shares plummet
DALLAS (AP) — Tuesday Morning Corp. said Monday that Brady Churches has resigned as CEO after only six months on the job, and the discount retailer named Michael Rouleau as its interim chief executive.
The news of another leadership change at the company sent its shares plunging more than 13 percent by close of trading.
The Dallas-based company gave no specific reason for Churches' resignation, but the departing company leader said in a statement that he and the board determined the transition was in the company's best interest.
Tuesday Morning hired Churches, a former Big Lots executive, in September to fill the vacancy after it fired his predecessor, Kathleen Mason. Mason later sued the company, saying that she was discriminated against after she disclosed her breast cancer. The company has said there was no merit to her claim and that her firing was lawful.
The company did not return a phone call seeking further comment on its leadership changes but issued the following statement from Steven Becker, chairman of the board:
"We wish Brady well and appreciate his transitional counsel to Michael Rouleau, whose successful transformation of Michaels Stores - one of many notable accomplishments in a long retail career - holds important parallels for the critical work ahead at Tuesday Morning."
Tuesday Morning is now looking to retail veteran Rouleau, a former president and CEO of the Michaels chain of craft supply stores, for leadership until a permanent replacement is found. Rouleau will continue to serve as a member of the company's board.
The company, which operates more than 830 stores nationwide that sell discount or closeout items for the home, is trying to improve its profitability. It reported in August that it earned $3.9 million, or 9 cents per share, in its last fiscal year. That was down sharply from the $9.6 million, or 22 cents per share, earned in the prior year. Its annual revenue slipped 1 percent to $812.8 million, but it expects sales to rebound in the current fiscal year.
Tuesday Morning said Churches will continue to work for the company as a consultant. The company has hired a global executive search firm to help it find a permanent CEO.
Shares of Tuesday Morning fell $1.20 to close at $7.78, after trading as low as $7.20 during the session. The stock has traded between $3.21 and $9.65 in the past 52 weeks.