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Author: Nicholas Marshi

Weight Watchers: CEO Departs

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13 September 2016
  • On September 12, 2016, Weight Watchers International, Inc.  announced that James R. Chambers notified the board of directors of the Company  of his resignation as a director of the Company, effective September 11, 2016, and as Chief Executive Officer of the Company, effective September 30, 2016, in order to pursue other opportunities. Mr. Chambers will remain employed with the Company as a special advisor until December 31, 2016. This post is copied from the 8-K filing.
  • On September 12, 2016, the Company announced that, effective September 12, 2016, Thilo Semmelbauer was appointed as a Class III director of the Company.
  • The Company also announced that, effective September 12, 2016, the Company has established the Interim Office of the Chief Executive Officer and appointed Nicholas P. Hotchkin, the Company’s Chief Financial Officer, Christopher J. Sobecki, a director of the Company, and Mr. Semmelbauer as members of such office, to serve on an interim basis until such time as the Company appoints Mr. Chambers’ successor.
  • Biographical information for each of Messrs. Hotchkin, Sobecki and Semmelbauer is set forth below:
  • Nicholas P. Hotchkin. Mr. Hotchkin, age 50, has served as the Company’s Chief Financial Officer since August 2012. Prior to joining the Company, Mr. Hotchkin had spent several years at Staples, Inc., a global leader in the office supply industry. Most recently, Mr. Hotchkin served as Senior Vice President of Finance for the U.S. Retail division of Staples based in Massachusetts, a position he held from May 2010 to August 2012. Before assuming that position, he had been Senior Vice President of Finance and Treasurer of Staples, a position he held from November 2006 to April 2010. Prior to joining Staples, Mr. Hotchkin held several corporate finance positions with Delphi Corporation and General Motors Corporation including assignments in the United States, Asia and Europe. Mr. Hotchkin received a B.A. in Economics from Harvard College and an M.B.A. from the Harvard Business School.
  • Christopher J. Sobecki. Mr. Sobecki, age 58, has been a director since the Company’s acquisition by Artal Luxembourg S.A. on September 29, 1999. Mr. Sobecki is a Managing Director of The Invus Group, LLC, which he joined in 1989. Mr. Sobecki is a director of Lexicon Pharmaceuticals, Inc. and a number of private companies of which Artal Group S.A. or Invus, L.P. are shareholders. He received an M.B.A. from the Harvard Business School and also obtained a B.S. in Industrial Engineering from Purdue University.
  • Thilo Semmelbauer. Mr. Semmelbauer, age 50, served as President and Chief Operating Officer of Shutterstock, Inc. from April 2010 – January 2015. Prior to joining Shutterstock, Mr. Semmelbauer served as Executive Vice President of TheLadders.com, Inc., a career management company, from June 2009 to March 2010. Prior to TheLadders, Mr. Semmelbauer was with Weight Watchers for eight years, serving as Global Chief Operating Officer from December 2006 to July 2008, Chief Operating Officer, North America, from March 2004 to December 2006, and Co-Founder and President of WeightWatchers.com from February 2000 to March 2004. Prior to Weight Watchers, Mr. Semmelbauer served as a Principal at The Boston Consulting Group. Mr. Semmelbauer holds an A.B. in engineering and computer science from Dartmouth College and a Master of Science in management and electrical engineering from Massachusetts Institute of Technology.
  • Weight Watcher’s stock price is sharply down on news.
  • BDC Exposure: Minor at $3.5mn.
  • Two BDCs are involved, both with senior secured exposure: American Capital Senior Floating (ACSF) and non-traded BDC NexPoint Capital, which focuses on health care.
  • At June 2016-according to Advantage Data-ACSF has written down its position by 10%. NexPoint bought in at a discount and shows a premium to Cost.
  • However, neither positions are material to either BDC and a potential further write-down on the news will have little impact.
  • BDC exposure was far greater a few quarters ago, but FS Investment Group funds appear to have sold off nearly $50mn in exposure.
  • This is our first Alert for Weight Watchers.
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