Louisville's Cafepress.com cuts CEO's pay amid continued losses

LOUISVILLE, Ky. (WDRB) —  Facing declining sales and persistent losses, Louisville-based Cafepress.com cut its CEO’s base salary by more than half and laid off 14 corporate employees, the company said in regulatory filing on Tuesday.

The online retailer, which sells customizable merchandise like t-shirts and coffee mugs, has been struggling through a multi-year turnaround effort. Its stock has declined about 92 percent since the company went public in 2012.

Cafepress’ sales fell each year from 2014 to 2016 and in each quarter in 2017. The company posted a $3.6 million loss in the quarter ended Sept. 30. It has not yet reported holiday season results.

The company said Tuesday that Fred Durham, its co-founder, chairman and CEO, had his base salary cut from $300,000 a year to $125,000, effective Feb. 5.

The company also cut its Louisville headquarters workforce by 5 percent, or 14 employees, on Jan. 9, according to the filing and Cafepress.com CFO Phil Milliner. Louisville Business First reported the layoffs last month.

In the filing, Cafepress said changes to search engine algorithms, like the one used by market leader Google, hurt its web traffic and contributed to sales declines last year.

The company continues to work on a “new and modern CafePress.com website” and other new lines of business, it said.

“We continue to make progress on completing the modernization of the CafePress.com website,” Durham said in the release. “These efforts are critical as we continue to optimize the business and enhance our technology to re-energize our customer experience and ultimately return to profitable growth, which has always been our top priority.”

At the same time, the company’s board and managers will “carefully consider all options to enhance stockholder value,” according to the filing.

Cafepress customizes products and ships them from a warehouse in the Riverport industrial park in southwest Jefferson County. It moved corporate staff to a headquarters building in Middletown in 2016.

Reach reporter Chris Otts at 502-585-0822, cotts@wdrb.com, on Twitter or on Facebook. Copyright 2018 WDRB News. All rights reserved.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *