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What: Shares of grocery-store operator SUPVERVALU
So what: Craig Herkert is getting the boot, with Chairman Wayne Sales becoming the new CEO in the hopes that he has what it takes to give the company a turnaround. The company has been plagued with falling sales and profitability and has now lost nearly 80% of its value from its 52-week high.
Now what: A company spokesman said, "After careful deliberation, the board decided that this change would be important to the company's efforts to improve our sales and earnings trajectory and generate long-term shareholder value." Wayne Sales is planning on focusing on cost cutting, which will help lower prices and make SUPERVALU more competitive with rivals. Investors are clearly optimistic that some fresh blood might help turn the tide.
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Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of SUPERVALU. Motley Fool newsletter services have recommended buying calls on SUPERVALU. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.