Executive Shakeup at Strouds

Strouds Inc. (City of Industry, Calif.), the troubled specialty retailer of bed, bath, tabletop and other home textile products that filed for Chapter 11 bankruptcy protection earlier this month, has announced – as a keystep in its reorganization process – that it has placed chairman and ceo Charles Chinni on paid administrative leave, by mutual agreement, effective immediately, pending review of the status of his employment contract and relationship with the company. John P. Brincko has been named interim president and ceo, with responsibility for the direction and operation of the business, and founder Wilfred C. “Bill” Stroud, Jr. has returned to the business as acting chairman of the board. Stroud, who with his wife Joyce opened the first Strouds store in Pasadena, Calif., in 1979, retired as chairman in February 1999, serving since as chairman emeritus. Brincko, a turnaround specialist, is principal of Brincko Associates, Inc., the turnaround and corporate renewal firm which Strouds has retained as financial restructuring advisors.

Strouds earlier announced that it has received a commitment for up to $50 million in debtor-in-possession financing from The CIT Group/Business Credit and Foothill Capital Corporation to fund its operations during the restructuring. The company currently operates 70 stores in five states, and also markets its home products through its web.