Wilton Brands, owner of EK Success and K & Company, announced Monday that their CEO is resigning effective October 31st.
Richard Conti, the departing CEO, will be replaced temporarily by company Chairman Jerry W. Levin while a search for a permanent CEO is undertaken. In a comment that is revealing about the reason for his departure, Conti said, “The Board and I both feel that Wilton’s new owners should have the opportunity to establish new CEO leadership for the Company.”
Wilton is under new ownership because of the settlement with its creditors that kept its holding company (Wilton Holdings) from being forced into bankruptcy this summer under an involuntary petition that was filed in July by several of its creditors. The petition was withdrawn as the result of an “agreement in principle” regarding the debt a short time later. The settlement was finalized this month:
As previously announced on October 12, Wilton’s parent company, Wilton Holdings Inc., and its subsidiaries consummated an agreement with their largest creditors, affiliates of TowerBrook Capital Partners L.P. and Deutsche Bank Trust Company Americas, to recapitalize Wilton Holdings. The recapitalization provides Wilton Holdings with an improved capital structure, a reduced debt burden, the ability to continue delivering great products and quality service to customers every day, and the opportunity to focus on growth over the long term. As a result of this agreement, affiliates of TowerBrook Capital Partners L.P. and Deutsche Bank Trust Company Americas are the new majority owners of Wilton Holdings.
In addition to EK Success and K & Company, Wilton Brands also is the home of the Martha Stewart Crafts line of products.