ShopHQ anoints a new CEO and new directors
June 23, 2014 02:31 PM
The past week has been a merry-go-round of personnel change involving the top executive and board of directors at ValueVision Media, which owns and operates ShopHQ.
ShopHQ.com, No. 106 in the 2014 Internet Retailer Top 500 Guide today replaced CEO Keith Stewart as CEO with Mark Bozek, who also is a member of the board. Prior to joining ValueVision, Bozek was co-founder of Dollars Per Minute Inc., a New York merchandising and entertainment company that creates exclusive entertainment content and proprietary brands for women age 30 and over, according to his profile on LinkedIn.
Bozek also worked for 14 years with e-commerce and Internet entrepreneur Barry Diller at IAC/InterActiveCorp, at one point serving as CEO of HSN Inc. (No. 26). At HSN, Bozek launched HSN.com as an e-commerce site in 1998, according to LinkedIn. ValueVision isn’t saying much about specific changes in replacing Stewart as CEO. The company has yet to file any personnel notices with the U.S. Securities and Exchange Commission including severance terms for Stewart and employment terms for Bozek.
But the change in CEO also coincides with big changes on the company’s board. On Monday ValueVision seated a new board that includes Bozek and Thomas Beers, CEO of Fremantle Media; John Buck, formerly CEO of Medica, one of Minnesota’s largest health insurance company; Ronald Frasch, a partner at private equity firm Castanea Partners; and Landel Hobbs, CEO of LCH Enterprises, a telecommunications and media consulting firm. Other board members include Lowell Robinson, former chief financial officer of Miva Inc., Bob Rosenblatt, formerly of HSN and Tommy Hilfiger, and Fred Siegel, a former SVP at QVC.
The new board members and replacement CEO are part of a a contested election and a shareholder vote with Clinton Group Inc, a New York hedge fund. In October, Clinton began pressuring ValueVision to replace all or part of its board with new personnel because of the company’s ongoing stagnant financial performance.
“ValueVision has great assets and our vision of all that comes next is ambitious; we plan to evolve the business, creating more robust platforms that enable us to become a far more relevant player in the multichannel worlds of TV, online, and mobile commerce and entertainment,” Bozek says.
For the first quarter ended May 3 ShopHQ reported:
- Web sales accounted for 44.7% of all sales in Q1 compared with 46.2% in the prior year. Based on that metric Internet Retailer estimates that e-commerce revenue increased year over year 2.1% to $71.38 million from $69.92 million.
- Total sales grew year over year 5.5% to $159.7 million from $151.4 million.
- Net income was $460,000 compared with $1.02 million in the first quarter of 2013.
- Average ticket was $76 compared with $93 in the prior year.