“The board remains confident in the company’s strategic direction and its ability to generate top-line growth,” Douglas Hacker, lead independent director, said in a statement. “However, execution has fallen short of our expectations and we believe that now is the time for a leadership change,”
SpartanNash also announced it will exit its Fresh Kitchen operation in Indianapolis in an effort to improve earnings within its food distribution division. The company will focus on its Fresh Cut operations, which it acquired in 2017.
SpartanNash expects a $20 million hit to net sales as a result of the exit from Fresh Kitchen, and it took a $14 million asset-impairment charge for its second quarter.
The company announced a preliminary earnings loss of $6.8 million, or 19 cents per share, for the second quarter. It downgraded its earnings outlook for the year from a range of $190 million to $205 million to between $183 and $195 million.
Eidson expressed confidence in the SpartanNash platform and said he looks forward to helping to deliver an improved performance. “Our focus will be on enhancing our distribution business, driving operational execution and organizational development while positioning SpartanNash to achieve long-term profitable growth and improved value for shareholders,” he said.