![]() ![]() Pure Fishing announced changes to its executive management team this month, with its CEO, Harlan Kent, stepping down but remaining on the Board and Dave Allen replacing him. In addition, the company extended the maturity of its ABL revolving facility to March 2026. The company also obtained a $50 million promissory note due until February 2027 to fund working capital and for general corporate purposes. Moody’s noted that in late fiscal 2022 and early 2023, Pure Fishing completed a series of transactions to improve its liquidity, which included entering into a $60 million property loan due October 2024, secured by the company’s North American real estate and provided by its financial sponsors, Sycamore Partners. Since 2021, ongoing cash flow deficits also contributed to higher debt. The company’s debt balance sheet doubled over the past two years due, in part, to having to fund the acquisitions of Plano Synergy in April 2021 and Svendsen Sport in February this year, added the report. In addition, said Moody’s, the elevated level of inventory has negatively impacted reorders. Pure Fishing reported ‘meaningfully lower operating results’ in fiscal 2022, with year-on-year revenue declining 14.6% as persistently high inflation and weakening macro-economic conditions pressurised consumer demand for its product. “We expect that demand and industry headwinds will persist in 2023 and the company has limited financial flexibility to absorb prolonged revenue pressures given its constrained liquidity. “The rating downgrade and negative outlook reflects Pure Fishing’s unsustainable capital structure and the elevated risk of default over the next 12 to 18 months given its very high financial leverage,” said Oliver Alcantara, AVP-Analyst at Moody’s. Moody’s Investment Services lowered Pure Fishing’s Corporate Family Rating – long-term ratings that reflect the likelihood of a default on a corporate family’s debt – and Probability of Default Rating both to Caa2 (very high risk). in Business Administration and Economics from Wilkes University.The financial rating of Pure Fishing has been downgraded as sales at the world’s largest supplier of fishing tackle declined by nearly 15% last year. Dudick was awarded a Juris Doctorate degree from Temple University in 2003, and holds a Masters in Marketing from St. Prior to his latest role, he was SVP/President, Convenience and Food Service. Dudick has spent the majority of his career with General Mills. I cannot wait to get started," stated Dave Dudick. Together with the executive team, and the support of our Board, we will expand our market position across our businesses through continuous innovation and by exceeding our customers' expectations. "These are exciting times for outdoor companies and I look forward to leading our organization through the next phase of the Plano Synergy journey. In Dave we identified a strong visionary with a personal passion for our brands and our industry." Ryan Busbice, President, added "As we expected, the opportunity to lead our iconic brands, combined with our entrepreneurial style,drew interest from high-caliber executives from across a broad spectrum of consumer goods categories. We found these qualities and more in Dave." In announcing the appointment Mark Pettie, Chairman, said "We committed in our search process to identify a leader who could draw upon deep executive management experience, keen customer focus and exceptional strategic and tactical planning with admired brands. Plano Synergy is a premiere outdoor adventure company designing, selling and marketing hunting and fishing products, including Plano molded tackle boxes and gun cases, Wildgame Innovations scouting cameras and game attractants and Barnett crossbows. Dudick joins the company from General Mills, Inc., where he was most recently SVP/President of General Mills, Canada. Dudick as Chief Executive Officer, effective August 1. The Board of Directors of Plano Synergy on July 13 announced the appointment of David E.
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