DURANGO, Colo. - Rocky Mountain Chocolate Factory Inc. (NASDAQ:RMCF), a franchisor and producer of premium chocolates and confectionery products with a market capitalization of $20.8 million, has announced the appointment of two new members to its Board of Directors. The appointments come at a crucial time as the company faces challenges, with InvestingPro data showing a 7.4% revenue decline in the last twelve months. Melvin Keating and Al Harper will join the board, effective November 26, 2024, replacing outgoing directors Starlette B. Johnson and Charlson Arnold.
Jeff Geygan, Interim CEO of RMCF, expressed gratitude to the departing board members for their service and welcomed the new appointees. "Their knowledge and experience will bring great value as we look to return Rocky Mountain Chocolate Factory to sustained growth and profitability," Geygan stated.
Melvin Keating's background includes leadership roles and board service at numerous public companies, such as SPS Commerce (NASDAQ:SPSC) and Vitamin Shoppe. He has also been involved in corporate restructuring as President and CEO of Alliance Semiconductor Corp. and worked as a Strategy Consultant for Warburg Pincus Equity Partners. Keating currently serves on the board of Agilysys (NASDAQ:AGYS), Inc.
Al Harper is known for his entrepreneurial ventures in transportation, real estate, and entertainment. He is the Owner and President of American Heritage Railways, Inc., which operates the Durango & Silverton Narrow Gauge Railroad and the Great Smoky Mountains Railroad. Harper has also become one of the largest shareholders of RMCF, recently acquiring approximately one million shares, which represents 13% of common shares outstanding.
Rocky Mountain Chocolate Factory, which is headquartered in Durango, Colorado, operates nearly 260 stores in the United States and has international locations as well. The company is recognized on Entrepreneur’s Franchise 500® and Franchise Times’ Franchise 400® for 2024.
The appointments come as the company aims to bolster its growth and profitability strategies. The information for this article is based on a press release statement from Rocky Mountain Chocolate Factory, Inc.
In other recent news, Rocky Mountain Chocolate Factory recently announced a net loss of $0.7 million in Fiscal Q2 2025, a slight improvement from the $1 million loss in the same period last year. The company's total revenue saw a minor decrease, standing at $6.4 million compared to $6.6 million in the previous year. In a surprising development, Mark Riegel, a director at Rocky Mountain Chocolate Factory, has resigned from his position on the Board of Directors, with the company confirming that the decision was not due to any disagreements with the company's operations, policies, or practices.
Among the recent developments, the company has disclosed plans to expand, including the opening of a new store in Edmond, Oklahoma, and three additional locations in the near future. Rocky Mountain Chocolate Factory is also in the process of a rebranding initiative, which is over 90% complete. The company has secured a new $6 million credit facility to support its strategic growth plans and has improved employee retention following wage increases.
Furthermore, Rocky Mountain Chocolate Factory is strengthening its e-commerce strategy and is set to implement a new ERP system in early 2025. The company is also launching a customer loyalty program, aiming to enhance operational efficiencies and customer engagement. These developments are part of the company's efforts to improve its financial performance and position itself for future growth.
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