DENVER — Red Lion Hotels Corporation today announced that its president and CEO, Greg Mount, resigned his position with the company and from its Board of Directors, effective immediately.
The Board will be engaging an executive search firm to identify a new CEO and has appointed a search committee. Jake Brace, an independent director on the company’s board, has been appointed as the search committee chair. Until Red Lion Hotels Corporation appoints a new CEO, a management committee comprised of executives will oversee the operations of the company, reporting to the Board, with Jake Brace as Board liaison to the management committee. The members of the management committee include Gary Sims, EVP and COO, Julie Shiflett, EVP and CFO, and Thomas L. McKeirnan, EVP and general counsel.
“The board recognizes the operational performance of the company has not progressed as anticipated,” said Bob Wolfe, chairman of the Board. “Action was necessary, starting with a search for a new CEO. The board is committed to creating shareholder value. To that end, the company is focused on delivering superior value and service to our franchisees to stem the pace of terminations, restructuring franchise sales efforts to accelerate franchise growth, and right-sizing the cost structure of the business to reflect RLH’s current size, revenue, and profitability requirements. The asset sales of the past few years are largely complete. The company now needs to put all its effort into building around a strong business proposition for its franchisees and delivering value to shareholders. This effort will take time and will require the right leadership to navigate the challenges and the opportunities that lie ahead. We are committed to identifying and hiring a leader to lead Red Lion and enable it to realize its potential for long-term profitable growth.”
