Excelsior-Henderson Motorcycle Announces Changes to Structure
3 September 1999
Excelsior-Henderson Motorcycle Manufacturing Company Announces Changes to Structure
BELLE PLAINE, Minn.--Sept. 2, 1999--Excelsior-Henderson Motorcycle Manufacturing Company today announced that it is restructuring its business operation to support future company growth. The restructuring is aimed at reducing cost and balancing production volumes with current distribution capabilities.
The staff reductions will come from all areas of the company and reduce the number of employees from 216 to 119.
Helping to lead the new direction of the Company are three additions to the Senior Management Team: Jack Thornton has been appointed President and Chief Operating Officer, and Terrance Adams has been appointed Chief Financial Officer. These two executives are part of the Platinum Group, a business consulting firm specializing in effective restructuring, financing and corporate development. The Senior Management Team also is enhanced by the addition of Senior Vice President of Sales and Marketing Gary "Jet" Johnson, an industry veteran with expertise in dealer development and training. They join Allan Hurd, Senior Vice President of Manufacturing and Engineering, and Co-Founders Dan, Dave and Jennie Hanlon.
"The business decision to make staff reductions was an extremely difficult one," the Co-Founders said. "We will focus on our marketing efforts, lowering motorcycle component costs and expanding our dealer network. However, in order to realign the Company for long-term success, it is necessary to reduce our staff."
"This type of action is not uncommon with entities transitioning from development stage to a predictable operating company," Thornton said, "and it will have an immediate and positive cash flow impact. I am confident that this new strategy to grow our dealer network and align our internal costs to projected unit sales will assist in putting the Company on a sounder financial footing."
"Following this realignment, the company plans to continue its growth strategy," Adams said, "and we anticipate that the restructuring will enable us to complete our previously announced efforts to obtain significant additional equity and debt financing."
The Company also announced that Dave Pomije has resigned from the Board of Directors for personal business reasons.
Excelsior-Henderson Motorcycle Manufacturing Company designs, manufactures, markets and sells a proprietary brand of premium heavyweight American cruiser motorcycles, as well as related parts, apparel and accessories branded with a name that evokes an authentic American motorcycling heritage and lifestyle. The Company distributes its products through a national dealer network. Excelsior-Henderson is one of only two authentic American motorcycle companies exclusively committed to the manufacture of motorcycles. For additional information, visit the Company's web site at www.excelsior-henderson.com.