Not an April Fools prank, unfortunately. Vista Outdoor issued pink slips to a number of Bell Helmets/Giro employees last week and announced the Scotts Valley campus was closing. In a regulatory filing, the group explained more than $50 million in cost cutting was coming, including eliminating Bell/Giro headquarters, spending cuts and headcount reductions across brands and corporate teams.
“The changes are being implemented in response to elevated retail inventory levels, rising interest rates and inflation, which have pressured our top and bottom lines and impacted our outlook for Fiscal Year,” claimed Vista Outdoor. “The changes will help the company compete in the current challenging economic environment and prepare for the separation of its Outdoor Products and Sporting Products segments into two independent, publicly traded companies, which is expected to occur in calendar year 2023.”
Vista Outdoor added it is accelerating the merger of the Bell, Blackburn, Copilot, Fox, Giro, Krash and Raskullz business units through “consolidation” of leadership and facilities. As part of these measures, Bell/Giro HQ will close effective September 1, 2023, with affected employees relocating to a revamped Innovation Center at its Fox Headquarters in Irvine, CA.
“These changes will drive efficiencies in the deployment of corporate services and enable more results from our supply chain, E-commerce, licensing and M&A Centers of Excellence,” claimed Vista in the filing. “The cost reductions bring Vista Outdoor’s Fiscal Year 2024 strategic priorities into focus and help prepare the company for the separation this year.”
SHIFTING GEARS
The restructuring efforts come as Vista Outdoor announced on February 6 the voluntary resignation of CEO Chris Metz due to Vista’s “board’s loss of confidence in his leadership.” Gary McArthur, a board member since 2015, was named interim CEO. As noted in our February Shifting Gears column, Fox head Jeff McGuane is overseeing the restructured cycling, snow and powersports portfolio:
https://issuu.com/dealernews/docs/issue_2_february_c1530f945b4a2f/18
Jason Vanderbrink was promoted to CEO of Sporting Products effective immediately. Vista’s Outdoor Products segment includes Bell, Bushnell, Bushnell Golf, CamelBak, Camp Chef, Foresight Sports, Fox Racing, Giro, QuietKat, Simms Fishing and Stone Glacier. The Sporting Products Group under Vanderbrink is made up of CCI, Federal, HEVI-Shot, Remington and Speer.