The Winter of 1987 was a cold and snowy one in New England. The first snow storm was in November and it seemed that we would not see our front yard again until June! In late March, I had a meeting with the CEO of Child World where I was given my performance review and a maximum bonus for 1986's performance. At this meeting, I again assured my boss that I was there to stay and had spent the last couple of months working furiously to demonstrate my dedication and loyalty to the Company. The meeting ended after 5:00 and when I returned to my office, my secretary had left for the weekend but had left me a note in the center of my desk. "Call Scott Meadow...IMPORTANT! He has called you 3 times!" I had not talked to Scott since I told him that I was out of the deal in early February and had assumed that the Sporting Goods project (if it was still alive) had proceeded in another direction.
So, I returned Scott's call. No small talk...Scott got right to the point: "We want you to come down to Newark tomorrow morning to meet the guy that is going to be the CEO of the Sporting Goods project." "No thanks," I replied...."I told you that I am out of the deal." It was like he didn't even hear me..." The flight is at 9 AM and Adam Kirsch from Bain Capital will meet you at the airport and fly with you. The meeting is at the Holiday Inn at the Newark airport. You will be back in time for dinner." Hmmmm. After much cajoling, I finally agreed to spend my Saturday in Newark. What could it hurt? It will give me the opportunity to tell them face to face that I was no longer in the deal!
On the flight to Newark, Adam told me how excited they were to be a part of the deal and how he was looking forward to working with me.....all good, if I was actually going to be in the deal! I walked into the conference room in Newark in time to hear Jack Smith pontificate about the value of promotional retailing versus Everyday Low Price Retailing. As he stood in front of the room in his satin Starter 76er's jacket, his silver hair and dark tan signaling a guy that had spent a lot of time on the golf course, he motioned to me and said "Well, this guy is suppose to be a merchant...look at these 2 Ads and tell me which one is best." I looked at the Herman's Ad and then glanced at an Ad for All American Sports Warehouse in California and I gave my honest opinion. "They both suck!" And THAT was my formal introduction to Jack Smith, the future President and CEO of The Sports Authority.
What I later learned was that the VC's had actually approached another executive at Herman's Sporting Goods and was turned down. This executive thought the idea was so outlandish that he told the COO of Herman's about the overture and joked about how foolish the deal was. Jack absorbed the information and called Scott Meadow to admonish him for approaching one of his executives and ultimately threw his own hat in the ring!
The meeting continued in a contentious tone throughout the day. We argued about the pricing policies, the marketing message, the size of the assortments, the layout of the store and any and every other detail of the proposed store. Jack was the COO of Herman's Sporting Goods and he had the Sporting Goods Industry background...but I knew Big Box retail and the challenges and opportunities incumbent in a 40,000 square foot retail store. Jack's background was Operations and Real Estate...mine covered the Merchandising and Marketing side of the business. At one point in the meeting, it became so heated that I left the meeting room and approached Jory Katlin. "Do you really think this is the guy to lead this thing?" I queried. "Why not give me a chance to be the CEO?" "Because this is the guy that can get in financed." Jory retorted. I was unusually quiet for the rest of the meeting. Game, set, match!
Returning home that evening, I was still not convinced that I wanted to be a part of the deal and was not even sure if Jack wanted me to be part of the deal. But he called on Sunday night with an offer....a really bad offer that would require me to take a deep cut in salary but included equity participation in the venture. I turned him down on the spot. No way was I going to take THAT deep of a cut. We went back and forth for a week, with Scott Meadow pulling the strings.
Finally, we came to an agreement...but now I had other BIG problems! How do I tell my boss that I was going to renege on my commitment that I was staying at Child World? How do we break the news to the kids that we were, once again, moving? Am I totally out of my mind leaving a secure position for one so tenuous? After receiving some not so glowing references from former co-workers of Jack's, could I actually have a successful working relationship with him?
These answers and more to come in Part 4.
And The Journey continues............
No comments:
Post a Comment