The Spiegel Group suffered yet another convulsion last week when its CEO stepped down to be replaced by a turnaround expert.
Martin Zaepfel, who was put in place by German parent Otto Versand two years ago, retired on Saturday.
He was replaced by William Kosturos, a managing director at turnaround firm Alvarez & Marsal Inc.
Outsiders speculated that this would lead to a bankruptcy filing, but there has been no word yet from Kosturos on just what he plans to do.
Earlier in the week, Spiegel told the Securities and Exchange Commission that it would liquidate its credit card business, and that it “may not have sufficient funds to finance its operations beginning in the near future.”
Zaepfel told reporters in 2001 that he wanted to get out of the credit business. “The business risk and potential earnings volatility associated with the consumer credit and the capital requirements necessary to fund the business are not compatible with our efforts to establish The Spiegel Group as a strong, profitable retail company,” he said.
Prior to becoming CEO of Spiegel, Zaepfel worked at Otto Versand
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