Bain portfolio company sees double departure

The CEO and president of Broder Bros. have both given their notices at the Bain Capital portfolio company. Bain’s Thomas Myers will fill in on an interim basis.

Bain Capital portfolio company Broder Bros., a maker of sportswear, has announced the departure of two senior executives, including its chief executive officer Vincent Tyra.  The company is also losing president Mark Barrocas, who had only assumed that role this past February.

While the overlapping timing of the unrelated departures of two of our senior executives is unfortunate, the company remains strongly positioned for success…

Thomas Myers, executive vice president, Bain Capital

Thomas Myers, a Bain Capital executive vice president and Broder director, will fill in for Tyra on an interim basis while the company engages in a search for permanent replacements.

A statement issued to the press called the parallel departures “unrelated”, and a source at Broder confirmed that an email had been sent out to employees saying the same thing.

“While the overlapping timing of the unrelated departures of two of our senior executives is unfortunate, the company remains strongly positioned for success,” Myers said in the press release.

He went on to claim that Broder’s liquidity is secure, thanks to an increase in its revolving credit facility to $225 million, and added, “The supply issues that challenged the company during the first three quarters of 2005 have eased considerably.”

For the six months ended June 2005, Broder reported EBITDA of $22.9 million on net sales of $459.8 million. The company is expected to report third-quarter results early next month.

Bain had recruited Tyra, the former president of Fruit of the Loom, when it acquired Broder in 2000. During the past five years, Bain and Tyra have spearheaded a number of add-on deals for the company, including acquisitions of NES Clothing and Alpha Shirt Company.

According to the press release, Tyra is leaving to spend more time with his family in Louisville, Kentucky, while Barrocas has moved on to join a competitor. Tyra is going to stay on with Broder through December, and Barrocas will remain with the company until November 18.

Myers told PEO that the firm does not anticipate finding a permanent replacement before Tyra leaves at the end of December, and he noted that Bain is working on the specifications necessary for Tyra’s successor before it hires a head-hunter to spearhead a search.

However, Myers has history in operations. He previously spent 16 months as the CEO of a fasteners company in a turnaround situation, although he stressed that in the case of Broder, the circumstances are different. “This is not a turnaround situation. This is an extremely strong operation,” Myers noted.