One of Cosi’s largest shareholders is ready to pull the plug on management. He’d also like to step in as CEO.
Brad Blum, a restaurant industry veteran who took an interest in the company about a year ago, said he wants a shot at turning around Cosi, the Deerfield-based sandwich chain which is having a tough year. Cosi was notified in August that its stock faced a de-listing from the Nasdaq if performance didn’t improve. Five days later, CEO James Hyatt resigned, citing personal reasons. He has been replaced by Chairman Mark Demilio on an interim basis.
In an interview, Blum said he first approached Cosi’s board with a proposal in January, offering his services as executive chairman, and additional capital from a group of investors. He was rebuffed. He then re-approached the company in September with a 23-page proposal for ways to improve performance, and offered his services as CEO. Blum said he was told that the company planned to retain a search firm to identify the best candidate.
Cosi did not immediately respond to a request for comment. The company’s stock, which traded at $11.21 in March 2006, closed at $0.68 Tuesday. Shares have fallen as low as 56 cents earlier this month.
Blum has previously served as president of Olive Garden, and CEO of Burger King Corp., and is credited with turnarounds at both chains.
Blum now owns nearly 7 percent of the company through Winter Park, Fla-based Blum Growth Fund. Blum is calling for a no-confidence vote against Cosi’s board of directors, and suggests installing a new group. He has also offered to work for $1 for the first year if shareholders support his bid to become CEO.
