Homeseekers.com Inc., considered to be the most successful private service that displays home listings that is not associated with the RealtorÒ trade association, has undergone a management shakeup recently that involved the mass exodus of the company's entire senior management team.
Resignations were recently given by CEO and board member John Giaimo, CFO Dennis P. Gauger, board member Bradley N. Rotter, and James F. Sherry, board member and Chief Restructuring Officer. Earlier, former chairman Greg Johnson and former vice-chairman and executive vice president Doug Swanson resigned.
The Reno, Nevada-based company has announced that B.J. Rone, an experienced turnaround CFO and CEO for several companies, has joined HomeSeekers as President and Chief Executive Officer. He brings over 25 years of financial and operational experience to HomeSeekers and will now take the lead role in restructuring the company, and operationally and managerially positioning it for the future.
"We are thrilled to have B.J. Rone take on the roles of President and CEO of HomeSeekers," commented Joseph Harker, Chairman of The Board. "We could not have found a more qualified, professional leader than B.J. Rone. His turnaround track record, knowledge and real-world experience, and his passion for this business opportunity will serve our shareholders well."
B. J. Rone, a Partner of Tatum CFO Partners, LLP., has over 25 years of business experience in several industries including semiconductor, telecommunications, health care, retail, computer peripherals and passenger airlines. Mr. Rone has been a turnaround CFO and CEO for several companies. These companies' revenues ranged from zero to $475 million. He has raised almost $400 million of financing in IPOs, secondary offerings and debt. He has led four acquisitions and participated in three start-up companies including a DSL company in the UK.
From 1993 to 1995 Mr. Rome was CEO and President of Advocate, Inc. in Dallas, Texas, a Nasdaq reporting company providing medical billing, collections and physician consulting services with 1,600 employees, 53 offices in 11 states, and 5,500 doctor and hospital clients. Mr. Rone restructured the company and managed the company from a $2 million per quarter operating loss to a $600 K quarterly operating profit over an 18-month period. In early 1993 Advacare stock was at $1.50 per share, which gave the company a market value of $18 million. Mr. Rone subsequently sold the company for $109 million.
Mr. Rone's tasks at HomeSeekers will include: preparing a plan for profitability; hiring a Chief Financial Officer; supporting current merger and acquisition efforts; developing and implementing operational budgets; assisting in strategic alliance negotiations; managing capital structure, cash flows and debt structure; assisting in achieving general stability of the Company with employees, vendors, shareholders and the capital markets; and assisting in the development of the Company's long-term strategic plan, according to PR Newswire.
The struggling company has sold off their print publications and laid off staff in an ongoing effort to achieve profitability. The company's stock has been delisted from the Nasdaq SmallCap Market and has begun trading on the Over the Counter Bulletin Board. In June, Texas-based HomeMark bought a 61 percent stake in the company, in a deal totaling $100 million.
The recent mass exodus of top management has created problems for former business associates, contractors who have not been paid and for shareholders who have not yet voted on the issuance of 5 million shares to HomeMark, the Texas company that is part of e-Homes, Inc. or on the request to increase the company's outstanding shares to 200 million from 50 million.
Pat Rioux
