Così (COSI) Terminates CEO Dourney; CFO Rossy-Donovan Reisgns

August 22, 2016 4:11 PM EDT

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Cosi, Inc. (Nasdaq: COSI) announced that, on August 16, 2016, its Chief Financial Officer, Miguel Rossy-Donovan, submitted his resignation effective September 23, 2016 to accept the position of CFO at another company. The Company also announced today that its Board of Directors has terminated RJ Dourney as Chief Executive Officer & President, effective immediately. Patrick Bennett, a member of the Board of Directors, will serve as interim Chief Executive & President working in close conjunction with the full Board while the Company conducts a search for a permanent CEO.

CFO Transition

The Company and Board of Directors has begun the search to replace its CFO. Over the course of the transition period, Mr. Rossy-Donovan will be working closely with the Company and the Board of Directors to ensure the continuity of previously implemented financial and cash management systems, and the implementation of operating priorities required to facilitate the execution of the next phase of the Company’s strategic plan.

Mark Demilio, the Company’s Chairman of the Board, said, “Miguel has been instrumental in working with management and the Board of Directors to instill discipline to the execution of our most immediate needs to drive the momentum of the Company’s turnaround. We are saddened about his departure and wish him the best as he embarks on a different path. We appreciate that Miguel has agreed to a period of transition and are excited about the role he will play during this time in ensuring we are well-positioned to execute our strategy.”

Mr. Rossy-Donovan added, “I am proud of having successfully led, in close partnership with the leadership team, the efforts to position the Company to generate cash, to build strategic discipline and focus, and to foster an entrepreneurial culture with people at the center.”

“It is important to me that my decision does not distract the team, slow down the progress we have made, or interfere with the successful implementation of our most immediate priorities. I am thrilled to have the time, resources, and support to ensure we stay on-course during the transition,” Rossy-Donovan went on to say.

Appointment of Interim CEO

The Board of Directors also will immediately begin the search to replace its Chief Executive Officer and President. Mr. Bennett will serve as interim Chief Executive Officer & President until the selection process is complete. He has extensive experience working with distressed companies and building high-performance executive teams focused on delivering significantly improved results in complex and challenging business environments, in both public and private companies. Bennett also has experience in developing and executing growth strategies and multi-faceted strategic plans to improve market share, gross revenue and profitability. That experience, together with his substantial experience in dealing with financial markets and regulated industries, provides valuable perspective on strategic planning, growth initiatives and the challenges of our business.

During the transition, Mr. Bennett will work closely with the Company’s Board of Directors, who will continue to be actively involved and provide assistance to management as the Company continues to focus on its turnaround strategy.

“During this transition period, we are fortunate to have an executive with the skills and experience that Pat brings to Cosi. We believe his background and experience, together with the deep industry experience of fellow directors Jean Birch and David Lloyd, and the experience and contributions of all Board members, will be valuable during this transition, and that together we will bring a fresh perspective as the Company continues to focus on recapitalizing its balance sheet and building a stable foundation for the business going into fiscal 2017,” said Demilio.



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