Gadzooks, Inc. (Nasdaq: GADZ) today announced that its Board of Directors has formed a Restructuring Committee of the Board to oversee the continued restructuring of the Company that began in fiscal year 2003 with the conversion of its stores to an all- female merchandise assortment. William C. "Bill" Bousquette, a director since July 2001, was elected Chairman of the Restructuring Committee. Mr. Bousquette brings his years of experience with Texaco, Inc., Tandy Corporation and Emerson Electric Company to his new position. Also elected to serve on the Restructuring Committee are: Ron G. Stegall, a director since 1999, with numerous retail experiences including BizMart, Inc. and RadioShack and; G. Michael Machens, a director since 1992, Chairman of the Audit Committee, and currently a Managing General Partner of Phillips-Smith-Machens Venture Partners.
The Board has retained the services of Glass & Associates, Inc., a nationally prominent restructuring consulting firm, to serve as the Chief Restructuring Advisor and DJM Asset Management, Inc. to provide advice in the real estate area.
The Company also announced that Carol Greer, currently a member of the Board of Directors, has been engaged on a consulting basis to direct the merchandising function of the Company. Ms. Greer, currently Chief Executive Officer of Carol Greer Associates, a retail consulting firm, brings significant previous experience in senior management positions with Rich's, a division of Federated Stores, Carter Hawley Hale Stores and Woolworth/Venator. She also serves on the board of Loehmann's. In addition, the Company has retained the New York-based executive search firm of Herbert Mines Associates to recruit a senior retail executive to work with the Chairman and the Board.
"We are especially proud and pleased that Carol has accepted the challenge of leading the next phase of our merchant focus," said Jerry Szczepanski, Chairman and Chief Executive Officer. "Her leadership skills and years of retail experience will enhance and accelerate the outcome for Gadzooks in the marketplace."
"The first phase of the restructuring of Gadzooks to an all-female retailer is now complete with six months of results," added Mr. Szczepanski. "While the results are not up to our expectations, we are optimistic that the continued focus of our senior management team will complete the anticipated changes necessary to bring our operating results into line with those of our peer group. We appreciate the dedication of the Gadzooks associates who have worked tirelessly to achieve the concept makeover and the support of our valued suppliers who continue to meet and exceed our expectations to provide goods and services in a timely manner."
Dallas-based Gadzooks is a specialty retailer of casual clothing, accessories and shoes for 16-22 year-old females. Gadzooks currently operates 410 stores in 41 states.
This material includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. Forward-looking statements give our current expectations and projections relating to the financial condition, results of operations, plans, objectives, future performance and business of Gadzooks. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Although Gadzooks believes that the expectations and projections reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. There are many factors that could cause forward-looking statements not to be correct, including the cautionary statements contained in this material and risks and uncertainties inherent in Gadzooks' business as set forth in its filings with the Securities and Exchange Commission, including without limitation, its most recent Annual Report on Form 10-K, the registration statement filed on Form S-3 in October 2003 and its most recent Quarterly Report on Form 10-Q. These risks include, among others, the conversion to an all-female merchandise assortment, fluctuations in comparable store sales results, changes in financing mechanisms used by vendors, debt obligations, changes in fashion trends, increased competition and changes in general economic conditions. Gadzooks does not undertake any obligation to update any forward-looking statements contained in this material
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