Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Franklin Covey, a company that sells planners and other personal organization tools, has named Sarah Merz, president of Franklin Covey’s consumer unit, CEO of a new spin-off company that includes Franklin Covey’s web business and retail stores.
Franklin Covey Co., a company that sells planners and other personal organization tools, has named Sarah Merz, president of Franklin Covey’s consumer unit, CEO of a new spin-off company that includes Franklin Covey’s e-commerce business and retail stores. Merz also sit on the board of managers of the new company, Franklin Covey Products LLC.
Robert A. Whitman, Franklin Covey’s chairman and CEO, will be chairman of the board of managers of the new company for three years, working without compensation. Merz and her other senior officers will own significant equity interests in Franklin Covey Products, the company says.
Franklin Covey, No. 206 in the Internet Retailer Top 500 Guide, announced last month it would work with investment firm Peterson Partners Inc. to form Franklin Covey Products LLC. The new company will house Franklin Covey’s consumer business unit, which includes e-commerce, 70 retail stores, wholesale and international operations, and other related distribution channels, including government sales and domestic printing and publishing.
Peterson Partners will purchase the Franklin Covey consumer business unit’s assets for $32 million in cash, subject to adjustments for net working capital. Franklin Covey will pay $1.7 million for a 19.5% voting interest in the new company and will make a $1 million interest-bearing preferred capital contribution. The deal also allows for Franklin Covey to earn contingent license fees if the new company achieves performance benchmarks.