CEO, CFO Out at Hastings Entertainment Upon Sale Completion28 Mar, 2014 By: Erik Gruenwedel
Hastings Entertainment Corp. CEO John Marmaduke and CFO Dan Crow will resign their respective positions upon completion of the retailer’s $21.4 million sale to an investor, according to a regulatory filing.
Hastings, which operates 125 stores and 5,000 employees in the southwest, is being acquired by investor Joel Weinshanker, owner of National Entertainment Collectibles Assoc., which manages Elvis Presley’s Graceland estate in Memphis, Tenn., among other properties.
Marmaduke, who has been CEO of the retailer since 1982, is receiving a $1.5 million cash severance, in addition to $3 per share on more than 2 million shares of common stock. All common stockholders of record will receive the same per-share payout. Hastings was founded by Marmaduke’s father in 1968.
Completion of the deal is dependent upon a two-thirds majority vote by shareholders.
Crow, who has been CFO since 2000, will receive $750,000 in severance, in addition to payout on any common stock held. Crow will act as a consultant to Weinshanker until February 2015.
Senior executives Alan Van Ongevalle and Phil McConnell remain with Hastings, which will continue to be headquartered in Amarillo, Texas.
Hastings reported net income of $2.3 million during its most recent fiscal quarter.