Geerlings & Wade Inc. president and CEO David R. Peace was asked to step aside and has been replaced by Huib E. Geerlings as interim president and CEO, Geerlings said Monday.
Pearce will continue in his role as CFO for the time being, he said.
The move comes as the company warned last month that it expected to report significantly lower sales and a greater loss than expected for the second quarter ended June 30. Increased marketing expenses for test mailings to both prospects and existing customers and disappointing sales were cited as reasons for the higher than expected loss.
Sales were $1.6 million below projections for April and May compared to one year ago. Marketing expenses exceeded budget for the same period by $577,000 and had increased $725,000 over the same period last year. The trend has continued through June, the company said. Official results are expected to be released around Aug. 6.
“During the last nine months, the company has made substantial investments to explore new channels and other avenues for growth,” Geerlings said in a statement announcing the management change. “While this effort has yielded some positive results, it has not led to the desired revenue acceleration. I intend to apply what we learned in a controlled manner and focus on profitability.”
No time frame has been established to replace Geerlings, he said.
Geerlings, one of the company’s founders, has worked in various capacities for the firm from 1987 through 1995. He is expected to devote a substantial amount of time to his new responsibilities with the company.
Geerlings & Wade, founded in 1986, is a direct marketer of wine and wine accessories. The Canton, MA-based firm has retail locations in 16 states and home and office delivery to 29 states.
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