Harry & David names Hong CRO, interim CEO to help with refinancing

By Caroline Salls

Pittsburgh, Feb. 18 - Harry & David Holdings, Inc. has appointed Alvarez & Marsal managing director Kay Hong as its chief restructuring officer and interim chief executive officer, according to a company news release.

Hong will succeed Steven J. Heyer as CEO. Heyer will continue to be chairman.

The company said Hong will work closely with Harry & David's board of directors on its ongoing refinancing efforts and the next stage of its restructuring to strengthen its financial position and improve operations.

While at Alvarez & Marsal, Hong has worked with a number of multi-channel retail companies, including Spiegel, Inc., London Fog Group, Movie Gallery, Inc. and Eddie Bauer Holdings, Inc.

According to the release, Alvarez & Marsal has been retained to assist with Harry & David's restructuring process.

As previously reported, based on its current working capital and expected working capital requirements, the company will not be able to finance continuing operations, including servicing its payment obligations under its senior notes, without securing new capital and restructuring its obligations.

The company said it is holding discussions with its revolving credit lenders, bondholders, other creditors and owners in an effort to recapitalize.

Harry and David is a Medford, Ore.-based gourmet food and fruit gifts purveyor.

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