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What: Shares of closeout retailer Tuesday Morning (NASDAQ:TUES) were falling sharply today, down as much as 19% after its CEO suddenly resigned.
So what: The discount houseware specialist said that CEO Brady Churches was stepping down after just six months on the job. He will be replaced by Michael Rouleau as interim CEO. Tuesday Morning didn't provide a reason for Churches' departure but said he will remain with the company in a "consultative capacity." There was no specific reason provided for the change, but Churches said "the transition was in the company's best interest."
Now what: Churches, a former executive at Big Lots, had come on to replace Kathleen Mason, who was fired and subsequently sued the company on charges of discrimination. Two leadership changes in six months certainly don't bode well for the company's stability, and its financial performance has been headed in the wrong direction as well. In its last fiscal year, ended in August, it earned just $0.22 a share, down from $0.09 a year ago, and took a $41.8 million inventory charge in its most recent quarter. All signs seem here to say "stay away."
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