AOBC - Break-Up of Smith & Wesson Parent Thrown Into Turmoil After CEO Ousted
While executive misconduct will cause turmoil at any company, the ousting of American Outdoor Brands (NASDAQ: AOBC) president and CEO James Debney is going to have significant repercussions, because it was spinning off its Smith & Wesson firearms unit into a separately traded company later this year.
Although Debney was going to remain with the outdoor gear business, and although the board of directors quickly replaced him with two new individuals to serve as co-presidents and co-CEOs, the ouster creates significant doubt because American Outdoor was counting on Debney to be the steadying hand on the business with the greatest growth potential.
American Outdoor Brands stock barely registered a reaction to the news, but investors need to remain cautious if they were planning on remaining with the rugged outdoor equipment company.