Sarcom Shakeup: CEO Mills And VP Of Sales Berding Fired
Rick Mills, CEO, and Scott Berding, vice president of sales, are "no longer with Sarcom," according to the privately held solution provider, based here.
Mills could not be reached for comment. But Berding, speaking from his Ohio residence, confirmed he and Mills were fired last week.
As part of the new management structure, Randy Wilcox, company founder and board member, is now acting CEO, and Chuck Sweet, chairman, is acting president, according to a released statement.
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Sources say Sarcom's financial picture was more grim than Mills (above) portrayed.
Wilcox and Sweet declined to comment, and Sarcom executives would not say why Mills and Berding were let go.
Berding said both he and Mills were fired during an off-site meeting with Wilcox and Sweet. "They told me not to go back to the office, that they would pack up my stuff and send it to me," he said. "It was a three-minute conversation."
Wilcox said in the company statement that the changes would not affect Sarcom's strategic focus, its customers or its day-to-day operations. No other details were provided.
Over the past 18 months, Berding said he and Mills led the company's efforts to restructure $114 million in debt from what he called a series of bad acquisition deals.
Despite his termination, Berding said he believes the work he and Mills accomplished in refocusing the company from a products and low-end services company to a full-services company with seven distinct practices is on track.
"Sarcom is positioned to be very successful, and I wish them nothing but the best of luck," Berding said. "I just have a hard time believing the company is better off without Rick and [me."
Last month, Mills said in an interview with CRN that he was behind Sarcom's effort to exchange a substantial portion of the company's debt,incurred from its acquisition of 10 companies from 1997 to 2000,for equity, leaving the company with $10 million in total long-term outstanding debt.
Sources close to the company, however, say that Sarcom's financial picture is more grim than Mills had portrayed it. Sarcom executives disputed that claim but did not provide detailed figures or information.