Another President Promises Turnaround
In 2006, Longaberger announced a plan to turn the troubled company around-the hiring of President Jim Klein who had worked wonders for Avon. Klein would help the foundering basketmaker steer a course to renewed success for the company whose sales once topped one billion dollars.
Klein, the second executive from “the outside” brought with experience in turning companies around, is leaving after 22 months. Company line has it that Klein is leaving to pursue other opportunities, which in the experience of previous departing corporate personnel may consist of following his wife around the house and fixing things that aren’t broken.
New President is 15 Year Longaberger Veteran
New President Jim Gimeson has been with The Longaberger Company for 15 years, participatng in activities as diverse as supervising construction of the basket building, and and heading manufacturing. Reactions within the company are mixed. Karen Bircher, a national Sales Leader said of Gimeson, “We know he’s one of us. He didn’t come from New York City or wherever." However, according to the
Newark Advocate, some consultants having doubts are reluctant to speak up, noting that they were unwilling to comment because they feared they might get into trouble with the company and have their contracts terminated. Company spokesman Tim Matthews said he was surprised to hear that some consultants felt that way.
Maria Weiskott, Editor-in-Chief of Gifts & Decorative Accessories Publication for the trade said that "Baskets as a category are steady sellers, but . . .the collectibles market that Longaberger plays to has been down in recent years."
CEO Tammy Longaberger said,"I have put my confidence in many different people over the years, but some just haven't understood. . . who we are. As a result, I have made some good decisions and some not-so-good decisions."
References:
The Newark Advocate, The Columbus Dispatch
