Sun Capital: Cleaning house?
No sooner had word spread that Doug Harrison had stepped down as CEO of The Scooter Store, than industry sources began to speculate on whether investor Sun Capital was behind the move. Here’s what a couple had to say:
•“They’ve been under a lot of pressure in a market that’s just the dogs of the industry right now,” says Don Davis, a financial consultant with Duckridge Advisors. “It has to be a very difficult situation for a player of their size. There were probably a lot of people making second guesses, saying they should have made different decisions. It could be the CEO decided he’d had enough.”
•“Sun Capital is an active investor,” says Bob Leonard, an analyst with The Braff Group. “They’ll be on the board and they’ll be participating, but they’re not looking to run the business. Coming in and cleaning house is not their customary way of operating. My guess is someone was disappointed with how things were going and felt the need to make some changes.”