BMC Group Undergoing Reorganization with New CEO
GRENCHEN, Switzerland – BMC Group (BMC, Bergamont and Stromer) gets again a new CEO. With the start of the new year Thomas Binggeli will be replaced as operational director by Erwin Steinmann, who’s first job is to reorganize the management.
Only two weeks after BikeTec – Flyer, the second major Swiss bike brand of international reputation undergoes a similar change in leadership. Like Kurt Schär at Biketec Thomas Binggeli resigns from operational management. This doesn’t mean that he is out the top management of the company. Binggeli takes over the responsibilities from majority shareholder Andy Rihs and with that the chairmanship of the Board of the BMC Group Holding AG. Binggeli will thus concentrate on strategic tasks, “Which is much more my strength as the day to day operations,” he said.
New CEO Erwin Steinmann, although industry newcomer, apparently seems to be the right man in the right place as a specialist for, “Transformation processes and efficiency increasing” with 25 years of experience. His mission is to promptly implement the reorganization measures developed by the Board of Directors in collaboration with the consulting company Helbling Business Advisors AG.
Competitor takes a seat in the Board
After all, the new CEO gets an experienced professional at its side: Damian Wirth, who joins the Board of Directors. Interesting is the fact that he is CEO of Chris Sports Systems, a leading bike and sporting goods distributor. At BMC the distribution of the brands Rocky Mountain and Koga by Chris Sports Systems is not considered as competition.
The background of all this seems clear; investor Andy Rihs must have realized that the yields earned are still insufficient in relation to the high costs. And the message is clear: It was necessary to align the group slimmer for the future, more efficient and competitive, Rihs sets out the goal. He himself remains on the Board and will overlook the reorganization process. The exact procedure is to be defined and implemented in the first months of 2014.
The reorganization affects BMC and Stromer. It does not involve Bergamont which independently and successfully operates from Hamburg.