Financial Problems
Meade has had financial problems in the past and has survived with the help of its founder, John Diebel, purchasing back the company. However, Meade in the past few years has run into another round of financial woes, since Diebel sold the company again. The previous CEO since May 2006, Steve Muellner had announced various bad news for the company since he had the lead role for Meade. Meade's Irvine, California manufacturing plant was closed, with manufacturing moved to a new plant in Mexico, and a majority of the administrative positions were cut. Meade's customer service line has also been affected by the move to Mexico, including shorter operating hours and the elimination of the callback option. Meade is also looking at other options for the uncertain future of the company. No matter what the future was holding for the company, Muellner and some of the board members signed an agreement to cover themselves financially.
In April 2008, Meade sold two of its three non-telescope product brands (Weaver/Redfield) to two companies for a total of $8 million. However, as compensation for divestiture of these two brands, out-going VP of Sales, Robert Davis, received a $100,000 bonus from the company. On June 13, 2008, Meade sold their last non-telescope brand Simmons to Bushnell for $7.25 million. Also in 2008, Meade's stock value fell below one dollar, bringing up the possibility of Meade being delisted from the stock exchange. On October 3, 2008, Meade eliminated Donald Finkle's Senior Vice President position with the company providing him with one year of salary as severance and certain other benefits.
Meade announced on January 29, 2009 that it had sold Meade Europe, its European subsidiary, for 12.4 million dollars, thus relieving much of Meade's debt. However, that reduced the company's assets greatly. Further changes and unknown stability of the company was announced on February 5, 2009, with the resignation of Steve Muellner, Chairman of the Board Harry Casari and fellow board member James Chadwick. Former CEO Steven Murdock was reinstated as Meade CEO. On March 5, 2009, the company announced the resignation of CFO Paul Ross and the assumption of the position by John Elwood. With his resignation, Ross receives a severance in the lump sum of $260,000. During the summer of 2009, Meade announced a 20:1 reverse stock split in hopes of raising the value of their stock.
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