Cenveo Names Malone New CEO
ENGLEWOOD, CO—Needing leadership to guide the company through a transition phase, Cenveo Inc. turned to a restructuring specialist as it continues to ponder offers and mull strategic alternatives. But barring the results of a special meeting requested by shareholder Burton Capital Management (BCM), James R. Malone's tenure could be a brief one.
Malone, whose Qorval LLC financial and business restructuring firm has put him at the helm of companies such as Mail Contractors of America, Avborne Inc. and Brown Jordan International, replaces Paul Reilly, who resigned in January. A turnaround specialist, Malone has no experience in the commercial printing industry. (See Q&A with Malone on page 24 or at www.piworld.com.)
Cenveo's largest shareholder, led by Robert Burton—who had previously asked Cenveo to install him as chairman and CEO—criticized the printer for hiring a person without a printing background nor a successful track record in guiding a printing company.
In a June 24 letter to Chairman Susan Rheney, Burton questioned the decision to hire a CEO before the review of strategic alternatives is complete, particularly with the reported plans to sell Cenveo, in part or in whole.
Burton argued that a better investment would be monies toward new capital and financial incentives for key Cenveo employees.
Should Burton's interests be successful in removing the current board of directors at the September 14 special meeting, Burton said that Malone will not be retained.