Four top Imation Corp. executives were terminated in a restructuring plan that includes more layoffs.
Activist investor the Clinton Group won a proxy battle in May that gave it three seats on the Oakdale company’s board. As a result, former CEO Mark Lucas resigned and Barry Kasoff was later named interim president.
Now, in a Securities and Exchange Commission filing made late Tuesday, the company said more of the old guard executives — R. Ian Williams, vice president of Imation’s legacy tiered storage and security division; Scott Robinson, chief financial officer and vice president; Gregory Bosler, vice president of consumer storage and accessories; and John Breedlove, secretary and general counsel — have or will be terminated no later than the first quarter of 2016.
The executive changes are part of a widespread restructuring plan that will close divisions and result in $140 million to $160 million in charges, the SEC filing said. The charges include up to $30 million in severance costs associated with the executive firings and $96 million to write down intangibles and good will and to reclassify certain property assets as “held for sales.”
The company announced late Monday it would be closing its legacy storage and media business and terminating its agreement with Japanese electronics maker TDK to focus on data storage and security.
The closed businesses will result in an unspecified number of additional layoffs, the filing said.
Kasoff said in the statement that the exiting of certain businesses and other changes were “critical in our ongoing effort to create a leaner, more focused Imation.”
Robinson in a phone call confirmed the terminations but said since his end date is in the first quarter “that is quite a ways to go.” He declined to say anything further about the changes, and the other three executives could not be reached for comment.
As part of their severance, each of the “noticed executives” will receive their annual salary plus various bonuses and money associated with medical and dental benefits, the filing said.
Imation’s stock fell 2 cents to $2.13 a share Wednesday. The price is one-third of its value from February 2014 and a mere fraction of its $12 value from 2011.
Last year, Imation reported 2014 revenue of $678,000 and losses of $107 million.