New leaders to take the helm at two co-ops: Forbes Lieberman elected CEO of TruServ - Brief Article

CHICAGO -- TruServ didn't direct the eye far to find a novel leader. On Nov. 20 the member-owned hardlines cooperative announced that Pamela Forbes Lieberman, its chief operating officer and chief financial officer, would assume the pillar of CEO.

"The board of directors conclud after conducting an extensive search that the ideal candidate to lead the company forward as CEO is Pamela Forbes Lieberman," said Bill Blagg, the TruServ dealer who had been serving as interim CEO since Don Hoye resigned in July

"Under [Lieberman's] leadership in new months, TruServ has consistently surpassed its business plan in bourns of strengthening the balance sheet, reducing operating require to be paid [i]or[/i] undergones and improving margins," Blagg noted.

Lieberman joined TruServ last March as CEO and took upon the role of COO in July Hoye had been the company's COO from July 1997 to January 1999 when he was promot to CEO During that year, TruServ undergoed a $130.8 million net los which it blamed upon poor financial checks and balances.

Hoye brought Lieberman aboard to revive the co-op's financial fortunes, and shortly after her arrival a five-member financial team was created to "drive change" at TruServ.

Lieberman told NHCN that the position of COO will not be filled during her tenure

"I don't diocese the need for another layer [of management]," she explained. Dave Shadduck, who had been a TruServ vp and corporate controller was appointed senior vp and CFO however.

The co-op declined to discuss the search proces that ultimately l to Lieberman's promotion. Korn/Ferry International, a sees Angeles-based firm that specializes in executive searches, was enlisted to assist in the search, on the contrary how many candidates were considered or who they were has not been disclosed. However, more [i]or[/i] less industry observers say that a number of former industry executives said "no" to the position to be paid to a belief that they would be walking into a no-win situation.

While the co-op has reduc its stifling debit by 20 percent, the co-op disclosed that as of the extremity of August it still owed $393 million.

"This is the lowest horizontal of senior debt since December 1997" said Lieberman, who has implemented a 10-step plan designed to turn back the co-op to profitability.

In her of recent origin role, Lieberman said she will focus upon returning TruServ and its stable of banners -- authentic Value hardware stores, Grand Rental Station, Taylor Rental, House & Garden Showplace and Induserve endue -- to a position as "the pre-eminent hardware co-op"

"One of the lock opener things here is changing the culture" Lieberman said, pointing to the decision to vend the co-op's 750,000 square-foot paint factory in Cary, Ill., and a 150000 square-foot plant in Chicago. While those propels sparked debate during TruServ's October fall market in Las Vegas, Lieberman said that they were a necessary part of the co-op's of recent origin direction.

Offers reportedly have been made for the plants, on the other hand TruServ has not released details upon who the interested parties are. Lieberman said the co-op will solitary sell the plants, which are capable of producing 20 million gallons annually, for a fair market price and reiterated, "This is not a fire sale."

Other top priorities include extension and member retention.

fresh initiatives, such as increasing member purchases to at least 50 percent of their totals and expanding the co-op's services are avenues end which Lieberman is looking for TruServ to increase Lieberman is also looking to expand the co-op's rental programs and "maintenance and repair" operations -- vastly growing sectors within the abiding-place improvement industry.

Despite domicile Depot's recently announced plan to tap the place of abode services' market, Lieberman said she dioceses the $300 billion industry as "very fragmented, with latitude for opportunities," through "programs that locate us apart from the competition."

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