CAIN CLIMBS OUT OF VALLEY
Founder and Chairman Barney Cohen will be serving as interim CEO during a search for Cain's successor.
Cain joined the firm nine years ago, and has been recognized as one of the masterminds behind Valley's meteoric rise culminating in a wildly successful public offering early last year. But since the concern's IPO, which started at $16 and at one point hit a high of $40, the company suffered from growing pains—and their financial results showed it.
The acquisition of Star Video, the building ofValley's new mega-distribution center in Louisville, and the move to a new warehouse space in Woodland all contributed to a muted bottom line, even though the company's sales figures continued to be the strongest in the nation.
With the stock riding at $4, rumors started to circulate that the highly respected Cain might be in trouble. This comes after the departure of long-time Sr VP GM Ken Alterwitz, who was ousted in the fall of '98. Former Atlantic Sr VP Sales Pete Anderson filled that vacant post just two months ago. The rumor mill will be busy for the next few months while a search for a new topper is underway.
