ROSWELL, Ga. -- Less than a month after stepping aside, Harry A. Blazer, founder and chairman of Harry's Farmers Market here, was re-elected last week as president and chief executive officer -- albeit by a newly constituted board of directors.
In the wake of Blazer's decision to resume an active role in daily management, the company's four other directors resigned.
Blazer, 44, was elected at a special board meeting last week. In explaining his decision to return to active management status, he said, "I believe this is the most appropriate course of action for the benefit of all shareholders."
This action "will be the first in a series of changes that represent a more aggressive approach to redefining the way we do business," Blazer said. "We firmly believe the course we are setting will best serve the interests of all shareholders by moving the company toward renewed profitability and growth."
Harry's operates four mega-stores and two Harry's in a Hurry convenience stores in the Atlanta area. The stores specialize in perishable food products and specialty and gourmet nonperishables.
Blazer is the beneficial owner of nearly 2.1 million shares of Class B common stock, or about 80% of the total voting power.
He had retained the title of chairman but given up the titles of president and chief executive officer in August. "It is hard to make this decision," Blazer said at the time, "[but] I will continue to do my best . . . to help Harry's Farmers Market realize its potential."
While the company did not name a successor as president in August, Michael de Boom, who had joined Harry's in July, was named acting CEO.
Following Blazer's return to daily management last week, de Boom has resumed the job he was originally hired for -- executive vice president of manufacturing and distribution.
The directors who resigned
last week are Arthur M. Blank, president and chief operating officer of Home Depot, Atlanta; Phillip E. Casey, president and CEO of Florida Steel Corp., Tampa, Fla.; John A. Williams, president and CEO of Post Properties, Atlanta, and David A. Pattillo, vice president of corporate development at Harry's.
Three new directors were named last week: John D. Branch, 40, senior vice president and chief financial officer of MacFrugal's, Los Angeles; Robert C. Glustrom, 43, co-chairman of AmTrade International Banks, Atlanta, and Terry L. Ransom, 48, chief administrative officer of Harry's.
The company said Ransom will also assume responsibilities for information systems, human relations and legal affairs at Harry's.
Harry's, which was founded in 1987, went public in 1993 and has suffered through two years of losses.
In April the company dropped plans to test its convenience-store concept in selected Wal-Mart stores, opting instead to refocus its resources on perfecting the stand-alone convenience-store model, expanding its megastore format and improving internal operations.
Local observers told SN the company's disappointing operating results had led to Blazer's relinquishing the titles of president and CEO a few weeks ago.
Lee Wilder, a securities analyst with the Atlanta office of Interstate/Johnson Lane, Charlotte, N.C., said, "As the majority shareholder, Blazer certainly does have the ability to choose who's in charge.
Wilder said Blazer's immediate challenge is to return Harry's to profitability, "which will take the better part of six months. Then he needs to formulate a growth strategy, and there will be additional financial requirements over the next year and a half."
