FTD top executives leave as company considers sale
Flower delivery company FTD said CEO John Walden is stepping down immediately as the Downers Grove company starts looking at strategic alternatives that include possibly selling or merging.
The struggling floral and gift company also said it is restructuring in an effort to save $18 million to $23 million in costs in 2019, according to a company news release, though it did not say how many employees would be let go. It plans to cut $4 million to $5 million in the second half of this year
Scott D. Levin, FTD's executive vice president, general counsel and secretary, will serve as interim president and CEO.
Strategic alternatives expected to be considered include a sale or merger of the company, the company said. FTD has retained Moelis & Company LLC as financial adviser to assist with its strategic alternatives review.
The changes are part of a series of moves designed to strengthen the 108-year-old company.
The global floral firm announced two months ago that it planned to relocate its headquarters to Chicago. FTD has been based in Downers Grove for 31 years. The move to Chicago was designed to strengthen the company's position as a leading floral innovator. The company did not respond to interview requests Friday.
"Our relocation to the heart of Chicago's Tech Triangle represents more than just a new headquarters for us," Walden said in May. "The move will enable us to develop the kind of technology sophistication and culture that will drive the creation of products, brands and technology-driven services our customers love," he had said.
Other restructuring moves announced late Thursday include the elimination of the chief operating officer position held by Simha Kumar, effective immediately. And Jeffrey D. T. Severts, vice president and chief marketing officer, will leave the company following a transition of his marketing responsibilities to Jay Topper.
"The board of directors is committed to enhancing stockholder value and has determined, after careful consideration, that it is prudent to conduct a thorough review of strategic alternatives," said Robert Berglass, chairman of FTD's board of directors. "FTD remains a leader in the floral and gifting industry, with widely recognized consumer brands and a global fulfillment network that includes its member florists."