Following an ouster of the board by its largest shareholder, Morgans Hotel Group announced that its CEO Michael Gross resigned as its chief executive officer. Jason Kalisman, the company’s chairman, will take over as interim CEO.
Burkle, founder of Yucaipa Cos., said Yucaipa has more than $200 million of Morgans debt and warrants for about 30 percent of the company’s stock. In a letter to Chairman Jason Kalisman, Burkle said it was time to sell the boutique lodging company to an appropriate buyer so that stockholders can benefit.
Morgan’s Hotel Group operates the Mondrian in Los Angeles and the Delano in Miami’s South Beach as well as multiple properties in New York.
More at Bloomberg.com.