FTD Companies explores strategic alternatives, announces CEO to step down
FTD Companie announced that its board has initiated a review of strategic alternatives focused on maximizing stockholder value. The strategic alternatives expected to be considered include, but are not limited to, a sale or merger of the company, FTD continuing to pursue value-enhancing initiatives as a standalone company, a capital structure optimization that may involve potential financings, or the sale or other disposition of certain of the company's businesses or assets. FTD has retained Moelis as financial advisor to assist with its strategic alternatives review. The FTD board also announced that it has appointed Scott Levin, currently FTD's executive VP, general counsel and secretary, as interim president and CEO. Levin succeeds John Walden, who has stepped down from these positions and from FTD's board of directors, effective immediately. FTD also announced a corporate restructuring and cost savings plan, under which it has identified opportunities to optimize its operations, drive efficiency and reduce costs. Under this plan, FTD expects to generate approximately $18M-$23M in annualized run-rate cost savings in 2019, with approximately $4M-$5M in savings expected in the second half of 2018. FTD expects to incur pre-tax restructuring and corporate reorganization costs in the second half of 2018 in connection with the implementation of this plan. The company expects to disclose an estimate of these costs when it reports financial results for Q2. As a result of these corporate restructuring efforts, the COO position held by Simha Kumar has been eliminated, effective immediately. In addition, Jeffrey D. T. Severts, FTD's executive VP and CMO, will be leaving the company following a transition of his marketing responsibilities to Jay Topper. Topper, who joined FTD as CIO in October 2016, has been promoted to the newly expanded role of executive VP and CDO. FTD's floral and gifting general managers will now report directly to the CDO.