Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is seeing its situation go from bad to worse. Now there is a management shuffle at the top due to inconsistent stock sales to meet margin calls. Sometimes you just cannot make up more controversial news in a troubled cult stock.
Chairman and founder Robert Stiller is out. Green Mountain has appointed Michael J. Mardy, a director and chair of the Company’s Audit and Finance Committee, as interim Chairman of the Board. Ms. Hinda S. Miller, who is chair of the Company’s Corporate Social Responsibility Committee, has been appointed as Chair of the Governance and Nominating Committee.
Robert Stiller sold 5 million shares to meet a margin call and the Form 4 filing noted, “The sales of Common Stock were effected by a financial institution pursuant to a margin call because the reporting person’s account did not satisfy the minimum margin requirements under various margin loans. The total number of shares reported as sold on this Form 4 is 5,000,000.” The problem here is that Stiller is the founder and chairman of Green Mountain.
The full release has all of the details but this is something that may be far from over. Both members who are being booted will remain on the board but will not receive their normal compensation until the company’s review of the situation is over.
Green Mountain shares are down only 1.6% at $25.95 in pre-market trading and the 52-week range is $24.03 to $115.98.
JON C. OGG