LESCO Announces Management Changes, Including New CEO

Effective Oct. 20, Jeffrey Rutherford has been named by LESCO’s board of directors as its new chief executive officer, the company announced Friday. Rutherford replaces Michael DiMino, who tendered his resignation last week. The change comes in the midst of an ongoing push by LESCO to open a total of 25 to 35 new Service Centers by the end of the year, as well as the recent sale of the company’s supply chain assets to Turf Care Supply Corp.

In addition to naming a new CEO, the company also promoted other individuals within the company. Bruce Thorn has been named chief operating officer, Michael Weisbarth becomes chief financial officer and controller, and Kathleen Minahan was named general counsel and secretary. All of the promoted individuals previously held management positions within the organization.

With an eye on expansion for the foreseeable future, LESCO Director of Marketing Bob West says the management changes, along with other recent hirings, will add retail experience to the company’s leadership. “Given the sale of our manufacturing facilities and distribution hubs, today LESCO truly is a store-based, sales-and-marketing organization, and the board of directors decided that this was the appropriate time to install leadership with the type of retail background necessary to drive LESCO’s Commercial Retail Strategy,” West told Lawn & Landscape.

West says Rutherford, Weisbarth and Kevin Wade, LESCO’s chief information officer, all worked previously for OfficeMax, while Bruce Thorn previously worked for The Gap. Moreover, LESCO recently hired Big Lots veteran Chuck Denny as senior vice president of sales and store operations, while Michael Poole worked for Talbot’s before joining LESCO this summer as vice president of real estate. Additionally, Maureen Thompson, vice president of human resources, has work experience that includes Alamo Rent-a-Car.
 
While thanking DiMino for his contributions to the company during his four-year tenure, Marty Erbaugh, chairman of the board for LESCO, is confident that the management changes will help the company continue on a path to success. “With the sale of our supply chain assets, these management changes put the right team in place to drive our store-focused strategy,” Erbaugh told Lawn & Landscape. “We are confident that Jeff and this senior team will successfully execute the company’s strategy of operating and expanding LESCO’s Service Centers and Stores-on-Wheels initiatives. We believe these changes will promote the strategic position of LESCO’s unique business franchise and lead to improved financial performance and enhanced shareholder value.”

West says LESCO’s Commercial Retail Strategy will give the company a program through which to adapt and apply best practices from leading retail organizations, thereby providing customers with the most convenient supply of products possible. LESCO’s Service Centers, Stores-on-Wheels and new signage are all examples of this new strategy, he says, noting that one of Rutherford’s main goals, like DiMino’s, will remain the company’s Service Center expansion.

“Currently, we have 296 LESCO Service Centers across the country, and we plan on increasing that number by 10 to 15 percent annually going forward,” West says. “The strategy to open new Service Centers is working very well – our customers clearly appreciate the convenience they provide. We opened 21 new Service Centers in 2003, 27 in 2004, and we will ultimately open 25 to 35 additional Service Centers in 2005. Those figures clearly illustrate our commitment to increasing our footprint throughout the United States, and we are excited about the opportunities these new Service Centers create to better serve current customers and form relationships with new customers while also creating career opportunities for LESCO associates.”

Rutherford has been LESCO’s chief financial officer since 2001 – a role that involved him in the development of business strategies and key initiatives, such as the sale of LESCO’s manufacturing plants and distribution hubs. In a recent letter to all LESCO employees, Rutherford outlines his goals and expectations in his own words:

“In addition to having the best team in the industry, we also have the best business model,” he says. “We will continue opening Service Centers, and we will continue increasing the number of Stores-on-Wheels on the road. Last week we completed the deal to sell our manufacturing plants and distribution hubs to Turf Care Supply Corp./Platinum Equity, which means today we are a true sales and marketing company that is financially healthier than we have been in many years.

“My goals for LESCO are quite simple,” Rutherford continues. “I fully expect that we will continue growing. By doing so, we will help more customers, we will create more opportunities for associates, and we will create more value for our shareholders. Everyone will win.”

LESCO plans to initiate a conference call on Wednesday, Oct. 26, at which time it will announce its third-quarter financial results and address the management changes.