PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--
Systemax Inc. (NYSE: SYX) reported that it has accepted the
resignation of Gilbert Fiorentino, Chief Executive, Technology Products
Group and Director, effective immediately. His resignation follows the
Company placing him on administrative leave on April 18, 2011 while
considering his termination. Fiorentino was placed on administrative
leave following the completion of the Company’s independent
investigation of its Miami, Florida operations.
Systemax reported that it has also executed an agreement with Fiorentino
whereby within 5 business days Fiorentino will surrender assets to the
Company currently valued at approximately $11 million. The agreement
requires the surrender of 1,130,001 shares of Systemax common stock
owned or beneficially owned by Fiorentino and $480,000 in cash. The
agreement also requires Fiorentino to disclose his and his immediate
family’s personal assets; forfeit undisclosed assets discovered by the
Company; disclose information regarding certain matters that led to his
being notified of the Company’s intent to terminate him; and to fully
cooperate with the Company in the future. Fiorentino and the Company
also exchanged mutual general releases and nondisparagement commitments,
and Fiorentino agreed to a 5 year noncompetition obligation. The
financial statement benefit to the Company from this agreement, which
will be less than $11 million due to accounting requirements for equity
transactions and the cost of the investigation, will be recorded during
the second quarter.
The matters investigated occurred over a number of years, did not have a
material impact on Systemax's previously reported financial results in
any reporting period, and were limited to the Company's
Miami operations. The Company’s Technology Products Group businesses are
continuing normal operations under the direction of Robert Leeds, the
founding CEO of the Company’s Technology business, who will continue his
role as Interim Chief Executive, Technology Products Group. The Company
plans to commence a nationwide search for a permanent replacement.
Richard Leeds, Systemax’s Chairman and CEO said, “Our Board of Directors
and management team is focused on running and growing our business,
which remains very strong. The Company has moved forward and I am very
pleased that our dedicated management team and employees are
re-energized and looking forward to a new era of profitable growth.”
About Systemax
Systemax Inc. (http://www.systemax.com),
a Fortune 1000 company, sells personal computers, computer components
and supplies, consumer electronics and industrial products through a
system of branded e-Commerce web sites, retail stores, relationship
marketers and direct mail catalogs in North America and Europe.
Forward-Looking Statements
This press release contains forward-looking statements about the
Company’s performance. These statements are based on management’s
estimates, assumptions and projections and are not guarantees of future
performance. The Company assumes no obligation to update these
statements. Actual results may differ materially from results expressed
or implied in these statements as the result of risks, uncertainties and
other factors including, but not limited to: (a) unanticipated
variations in sales volume, (b) economic conditions and exchange rates,
(c) actions by competitors, (d) the continuation of key vendor
relationships, (e) the ability to maintain satisfactory loan agreements
with lenders, (f) risks associated with the delivery of merchandise to
customers utilizing common carriers, (g) the operation of the Company’s
management information systems, and (h) unanticipated legal and
administrative proceedings. Please refer to “Risk Factors” and the
Forward Looking Statements sections contained in the Company’s Form 10-K
for a more detailed explanation of the inherent limitations in such
forward-looking statements.
Source: Systemax Inc.
Contact:
For Investors:
Brainerd Communicators, Inc.
Mike
Smargiassi, 212-986-6667
[email protected]
or
Dianne
Pascarella, 212-986-6667
[email protected]
or
For
Press:
Brainerd Communicators, Inc.
Nancy Zakhary,
212-986-6667
[email protected]