The former president and chief operating officer at the Forzani Group Ltd. says he was taken by surprise after being let go from the sports retailer Thursday, a day after the company reported a 21% jump in holiday season sales.
Forzani said in the release that Bill Gregson left the organization “to pursue other opportunities,” but in an interview late Thursday Gregson said “I’m not going anywhere… The company made the decision.”
Gregson had been with the company for 11 years, and said that, as far as he knows, there were no other staff cuts.
“We had a record year last year, and are ahead this year,” Gregson said. “The timing is interesting.”
Forzani also said Thursday the reorganization is expected to result in a one-time charge to earnings of approximately $4.2 million.
Gregson wouldn’t comment on whether the sum is a payout, and would not say if he plans to pursue legal action. He said he wasn’t aware of any reorganization plans.
Gregson joined Forzani Group in 1997 as the executive vice-president of corporate retailing and was appointed president and COO in 2003.
“Bill has made a substantial contribution to the organization,” said chief executive Bob Sartor in a release. “His impact over the last 10 years was significant.”
The sporting equipment retailer also said that Tom Quinn, president of its franchise businesses, will now head both the corporate and franchise segments as president.
“I am very confident, as is our board of directors, in Tom’s ability to manage these new responsibilities,” said Sartor.
The move came a day after Forzani said aggressive pricing and its purchase of Athlete’s World help push up sales in the holiday period by 21.3%.
Without its acquisition of Athlete’s World, sales increased 14.3% for the 10 weeks ended Jan. 6 compared to the same period last year.
The sales increase comes after Forzani’s Sartor blamed a soaring loonie and an unseasonably warm fall for the company’s rocky third-quarter results.
Third-quarter profit was $12.6 million, or 36 cents per share in the period ended Oct. 28, compared to $11.9 million, or 35 cents per share a year earlier.
