Canton, Mass. — Tweeter Home Entertainment Group's named interim CEO Joe McGuire as president/CEO, filling a position vacated in March when Jeff Stone left to become Tivoli Audio’s CEO.
In being named to his new post McGuire projected a return to profitability for the year ended September 2006.
McGuire was Tweeter’s chief financial officer when he added the interim CEO title in March. He came to Tweeter in 1996 when Tweeter acquired his company, Bryn Mawr Stereo and Television. He was Bryn Mawr’s chief financial officer for 10 years. Paul Burmiester was recently tapped to replace McGuire as Tweeter’s chief financial officer.
McGuire was elected to his new position by a unanimous vote of the board, which interviewed about six candidates for the position, a spokeswoman said. McGuire was the only internal candidate interviewed.
While with Tweeter, McGuire expanded his chief financial officer role to include the information systems, human resources, distribution, and service divisions. In his new roles, he will be responsible for returning the company to profitability and “to continuing the evolution the company’s business model” to focus on in-home installation and other in-home services, a spokeswoman said.
In his months as interim CEO, McGuire made internal changes to bring the company closer to achieving its service goals, including a merging of the company’s sales and installation divisions, the spokeswoman said.
Tweeter’s focus, McGuire told TWICE, is to “continue to drive solution design and product integration.” The company’s product selection, he said, “will evolve to support solutions, integration of legacy equipment and the continued move to all-digital entertainment.”
Tweeter recently announced plans for a 6 percent workforce reduction, or about 220 employees, and McGuire said the company has no plans for any more net reductions. Nonetheless, he told TWICE, “The makeup of the workforce will continue to evolve as we drive a greater level of services to our customers.”
Tweeter also announced this week that its bank syndicate has amended its existing credit agreement to provide the company with an additional $15.5 million of available credit under its revolving credit facility.
Effective July 22, the amendment provides for an additional $13 million in term loans and an increase in availability of $2.5 million resulting from changes in required reserves. “We view the increase in availability and the reduction in interest rate on the primary line as key indicators of support for our business strategy,” said McGuire. — Additional reporting by Jeff Malester