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FOR IMMEDIATE RELEASE |
Contact: Len Mayer
Tel: 707-725-6182 X3030
HUMBOLDT CREAMERY ANNOUNCES APPOINTMENT OF INTERIM CEO AND COMMENCES INDEPENDENT INQUIRY INTO SUDDEN RESIGNATION OF FORMER CEO
Fortuna CA, February 23, 2009—The Board of Directors of Humboldt Creamery today announced the appointment of Len Mayer as Interim CEO and the commencement of an independent inquiry into the circumstances surrounding the abrupt resignation of former CEO Rich Ghilarducci. The independent inquiry was triggered when, late on Friday, February 20th, Humboldt Creamery’s outside counsel received a call from the personal lawyer for Mr. Ghilarducci, saying that Mr. Ghilarducci had resigned, effective immediately, that the Creamery’s outside counsel would be receiving the resignation letter to be delivered to the Board of Directors, that there may be inaccuracies in the company’s financial statements, and that the company should suspend its offering of its Series B Preferred Securities.
“The Board of Directors was shocked at the news contained in the telephone call from our former CEO’s personal lawyer,” said Jim Renner, Chairman of Humboldt Creamery Board. “We immediately began an independent inquiry, which will be managed by an outstanding team of outside lawyers, accountants and other advisers. We are determined to get to the bottom of this matter as quickly as possible and to act in the best interests of our cooperative Members, employees, and business partners.”
Board of Directors Chairman Jim Renner announced that the Board had also taken the following steps:
- The Board has appointed a subcommittee of the Board to be involved daily in the oversight of the investigation.
- The Board has made a commitment to share as much information as possible under the circumstances with the Members of the Humboldt Creamery cooperative, along with the Company’s employees and business partners. The Board will also work as closely as possible with the local leaders to share information about the impact of this situation on the local community. In short, the Board has pledged to be as forthright as possible under these difficult circumstances.
- The Board has initiated a series of meetings with the Company’s key creditors to explore all possible approaches to safeguarding the continuing operations of Humboldt Creamery.
- The Board and key Company officials are reaching out immediately to the company’s business partners and to local community leaders. The Board will also be convening meetings of the Humboldt Creamery’s Members and employees.
- The Board has suspended the offering of Humboldt Creamery’s Series B Preferred stock.
- The Board has pledged to cooperate fully with any and all inquiries into this matter, and has instructed all Humboldt Creamery employees to do the same.
Prior to being named Interim CEO, Len Mayer was the Chief Operating Officer of Humboldt Creamery, a position he has held since 2007. Before joining Humboldt Creamery, Mayer was the CEO of the North Coast Cooperative for four years and an Administrative Officer for Humboldt Bancorp for years. Mayer is a past board member of the Humboldt County Farm Bureau, Humboldt County Chapter American Red Cross, and the Arcata Foundation.
Humboldt Creamery is a member cooperative association owned by 50 Northern California dairy families and the oldest active dairy cooperative in the state. The Company, which celebrated its 75th anniversary in 2004, produces a full line of dairy products, including fluid milk, powdered milk, ice cream and frozen novelties.