It may be difficult for Karen Katz to leave her role as president and CEO of Neiman Marcus after 30 years of service. She will serve on the board, but she's been replaced with an outsider—Geoffroy van Raemdonck from Ralph Lauren. Katz will step down just about one year after her predecessor, who served for less than three years in the position.
According to a CNBC report, the retailer is struggling as many are today:
The move comes at a crucial time for the high-end department store, which has been working to restructure its roughly $4.4 billion in long-term net debt and readjust to the rapidly changing retail landscape.
In a news release, the company announced the change, and Katz is included in the list of people quoted:
It has been a unique privilege serving as CEO, and I am proud of the substantial progress and success our team has achieved. Geoffroy has an impressive track record of success at luxury brands, and he is the right person to lead the Company through this next phase of growth.
- Read other news and opinions about Katz's departure. What is said in the company's news release, and what is perhaps unsaid?
- Should the company be more transparent about the decision in this statement? Why or why not?
- How does this CEO departure statement compare to others? Research other companies' statements to compare circumstances and approaches.
- In what ways does Katz demonstrate humility?