Excelsior Cuts Back

EXCELSIOR CUTS BACK

Facing slow sales of its new Super X cruiser and larger-than-expected second-quarter losses, Excelsior-Henderson has been forced to lay off almost half of its employees. The staff reductions, from all areas of the company, cut the workforce from 216 to 119.

“We definitely stumbled,” said cofounder Dave Hanlon about the job cuts. “Maybe we weren’t smart enough or maybe we just didn’t realize how difficult this business was.” Hanlon said the company will now concentrate on marketing efforts, lowering component costs and expanding its dealer network. Excelsior-Henderson would like to double the current dealer count

Alsoaft -S the appoint'

Thornton as president and chief operating officer, a newly created post. Terrance Adams was named chief financial officer. Both Thornton and Adams are part of the Platinum Group, a consulting firm specializing in corporate financing and restructuring.

“This type of action (a layoff) is not uncommon with entities transitioning from development stage to a predictable operating company,” Thornton said. “It will have an immediate and positive cashflow impact.”

As of presstime, Excelsior-Henderson was still some weeks away from making an announcement about obtaining additional equity and debt financing. Sources estimate the comrequire an additional $10 million capital.

David Edwards