Thanks for the congrats... just to clarify though, it was only the public players championship, pretty small potatoes compared to something like an Ontario Amateur title... don't want people to get the wrong idea! : ) (The tournament field was only about 30 people but I was pretty happy to win it nonetheless).
True, a new CEO to lead the organization and this Ken fellow leading the components side. It still seems a bit like a no-win situation for the two of them in some senses, depending on how involved Carl and Frank want to be. The new CEO should be a good thing but in most organizations the CEO drives strategy not decision-making. Perhaps there will be new performance measures for the management which will ultimately drive some process redesign, operational improvements or cost cutting measures to meet strategic goals. I also wonder how the new role will be for Ken... if Carl and Frank will continue to have responsibility but at a different level than before, it may be a struggle for them initially to not have the decision-making role or influence they had before, i.e. to let Ken perform his role. I think it's a good thing (the sale) but that's on paper and with seemingly few changes except the head of the organization, it will be interesting to see if it has the desired effect: enabling people with stronger skillsets to manage the company financially, operationally etc.
Jen
Harry F. Schiestel wrote:
Hi Jen
First my congrat's Jen for winning the GAO provincial title > quite an
accomplishment.
So who does Carl and Frank now report to? It states that they will have a
new boss, then
the next words are Jim Thompson, CEO. It goes on to state Carl and Frank
will focus on the
components portion of the business, but Ken Brugh will have ultimate
responsibility for the
component business. Just found this paragraph a little confusing as to who
works for who.
I have networked with Ken Brugh on several occasions and found him to be
very professional
and a real capable individual and VP while at Golfsmith. I wish Ken the
best in moving GS's
component business forward to new levels of operational excellence.
Thanks HarryS (member of the GAO)
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:owner-shoptalk@;mail.msen.com]On Behalf Of [EMAIL PROTECTED]
Sent: Friday, November 08, 2002 8:54 AM
To: [EMAIL PROTECTED]
Subject: RE: ShopTalk: Golfsmith component future
Thanks for the post Dan. As others have mentioned I am glad they will be
around for a while.
One thing struck me as interesting as I read it. In one comment they
mention the magnitude of the company has passed their level of
skill/knowledge in finance, acct, ops etc. Then they say they didn't want
to install a whole new management team. I just found that interesting. I
understand that they would want to save as many existing positions as
possible but if existing management doesn't have the knowledge to operate
that size of business which led them to the decision to sell, then.... ???
It would be interesting to see how this new investor/owner plays out... if
they are merely a majority shareholder and no real management changes,
nothing has changed in the area(s) that they suggest they need the
assistance with!
Just struck me as interesting...
Jen
Original Message:
-----------------
From: Dan Neubecker [EMAIL PROTECTED]
Date: Fri, 8 Nov 2002 08:03:41 -0500
To: [EMAIL PROTECTED]
Subject: ShopTalk: Golfsmith component future
FYI, below is a message from GS regarding the change of ownership. It does
not sound to me like they plan on closing the component division any time
soon, and even mention adding "another established "brand" to custom
clubmakers".
Dan Neubecker
A MESSAGE
from Carl, Barbara and Frank
About three years ago, we (Frank, Carl and Barbara) decided that the time
had come to sell Golfsmith. On one hand, the magnitude of the company had
simply passed us by in terms of our knowledge of finance, accounting, retail
operations, catalog database management, etc. On the other hand, we owned an
extremely valuable company thanks to the efforts of truly fine employees,
and thanks to the support of many, many equally fine customers. If something
happened to one of us (after all everyone knows that Carl is getting "really
old") our heirs would be forced to sell the company in order to pay
inheritance taxes -- as they would be substantial. And very frankly, we felt
much better equipped to handle a sale than our children might be.
At any rate, we quickly forgot about any plans for a sale as we all focused
on getting through the difficulties of the systems conversion in 2000 (which
I'm sure none of you remember!). Then, after we were back on track, we had a
very good year in 2001 and again started entertaining thoughts of a sale. We
started making presentations to prospective buyers in the spring of this
year. We talked only to highly successful companies with impressive track
records for running and growing companies. It was an eye-opening experience,
having never gone through the process before. We never anticipated the
excruciating level of detail that would be required. There were some
prospective buyers who suggested that they could install a whole new
management team. They didn't realize that that was the last thing we wanted.
We did not want our terrific managers to lose their jobs. We also felt that
these managers were the key to the success we've experienced, and to
maintaining ongoing relationships with our customers.
The whole process started to make some sense after we identified the company
we felt would be the best company to assist in Golfsmith's future growth. We
are writing to let you know that as of October 15, 2002, we have completed
the transaction and sold a majority interest in Golfsmith to First Atlantic
Capital, Ltd., a private equity investment firm from New York. First
Atlantic Capital, Ltd. is a very progressive company that presently owns a
number of very successful companies. They were a pleasure to work with
through a somewhat difficult process, and exude the values that have always
made Golfsmith special. These are very exciting times for Golfsmith, and we
are pleased that we will be able to continue to be a part of it. We retain
significant ownership in the company, are on the Board of Directors and will
continue to work with the company, although our day-to-day roles will
change. Our focus will be the components portion of the business - which we
grew up in and is our passion.
The biggest change for the 1,000 plus employees at Golfsmith (including Carl
and Frank) is that we will all have a new boss. Jim Thompson, formerly the
Senior Vice President of Stores and Merchandising, is the new President and
Chief Executive Officer. He is very knowledgeable, and will be terrific in
his new role. Ken Brugh, a Vice President and Golfsmith employee since 1981,
will have ultimate responsibility for the component division, just as he has
for many years.
We mentioned that these are exciting times for the company. In 2001, the
company experienced the most profitable year in its history, and this year
has been very good (especially considering the slow economy, down stock
market, terrorism, wild fires, etc.) Our Vice President of Research and
Development, Jeff Sheets, and his team, have designed a number of the finest
golf clubhead models we have ever seen in the components industry.
Additionally, as we write this message, the details are being worked out so
that Golfsmith can offer another established "brand" to custom clubmakers.
Details will be released soon.
First Atlantic Capital, Ltd. has a history of success and should be of great
assistance to Golfsmith via their vast business acumen and experience. We
have had the opportunity to meet the founder and the various principals at
First Atlantic during this process, and they are the types of people that we
(employees and customers) will all be proud to be associated with. All three
of us are very grateful for the support that you, our customers, have given
us, and we value the personal relationships we have developed with many of
you over the years. We have always worked to make Golfsmith the very best
supplier in the golf industry, and we look forward to continuing to work
with all of you to make custom clubmaking more successful than ever.
