The chairman and CEO of Arctic Cat resigned Monday and the company's former CEO is returning to run the struggling Plymouth-based snowmobile and ATV maker.
The Business Journal reports that Claude Jordan, who has spent six years at Arctic Cat, will step down and that former CEO Chris Twomey, who led Arctic Cat for 24 years, will return as interim chief. The Wall Street Journal reports that the company's board will begin a search for a permanent CEO.
Jordan and the board "have mutually decided this is the right time, however, for new executive leadership at the company," said Twomey. He added that it makes sense to set up the leadership team that will take the company forward as it enters a new fiscal year.
Arctic Cat shares have fallen 35% since the start of the year. In a story published in mid-May, the Star Tribune reported that the company had posted a $1.5 million loss for its fiscal fourth quarter and lowered its outlook for fiscal year 2015 due to the weak Canadian currency and an unfavorable product mix. The story noted that the company’s shares experienced a similar drop for quarterly results in January.
At the time, Jordan said that “our business will face significant headwinds in fiscal 2015” due to the weak Canadian dollar. About 30 percent of Arctic Cat’s revenue comes from Canada.
The company also is seeking a new chief financial officer; CFO Tim Delmore had previously announced he'd retire this year, but has put that off while a search continues for the top executive.