Four Day Runner Directors Resign From Board

Day Runner Inc., long-struggling maker of daily organizers and planners, announced a major shake-up in the boardroom Thursday.

The Fullerton company said four board members resigned, effective today, including Chairman Mark A. Vidovich.

The beleaguered company also said former Chief Executive James E. Freeman resigned from the board recently. Freeman had stepped down as CEO in May after less than two years on the job.

“Obviously, the company’s in dire straits,” said Michael Crawford, an analyst with B. Riley & Co. in Los Angeles. Day Runner “recently closed its corporate headquarters, and now its top executives have resigned.”

The company’s announcement did not elaborate on the resignations. Freeman would not comment, and other officials could not be reached.

Other board members who resigned were James P. Higgins, who heads a financial consulting firm; Jill Tate Higgins, the company’s largest individual shareholder; and Boyd J. Willat, chief executive of Willat Writing Instruments.

Vidovich had served as Day Runner’s chief executive for 12 years, presiding over a company that became a leading marketer of personal organizers in the United States.

When he retired two years ago, Day Runner was still logging record earnings and sales. He remained as chairman.

But the company’s acquisition of British rival Filofax Group in the fall of 1998 left Day Runner swimming in debt and high interest costs.

Over the last five quarters, Day Runner has lost more than $24 million, and it has warned of “substantial losses” in the future. The company closed its Irvine headquarters, consolidating its operations at its Fullerton plant.

Day Runner said John F. Ausura, who has been serving as interim chief executive, recently was elected to the board. Ausura is a principal of Crossroads LLC, which was hired by Day Runner in May to provide interim management services.

Business consultant Alan R. Rachlin and investor Charles Miller remain on the board, the company said.

The announcement was made after U.S. markets had closed.

The company’s stock, which recently was removed from the Nasdaq National Market, rose 7 cents a share to 94 cents Thursday in over-the-counter trading. Day Runner’s stock has lost more than 95% of its value since the beginning of the year.