said Tuesday that its president and chief executive officer Herm Rosenman has resigned, effective immediately.
The company said that its general counsel Harold Collins has been named as interim chief operating officer until the board identifies a new chief executive officer.
Bikers Dream also announced that on March 20 a lawsuit brought by a fomer franchisee resulted in an award of $683,601 against the company.
Judgement cannot be enforced until 10 days after the last day on which the company may file an appeal. Currently the stay will expire on May 29 but the company is in the process of filing post trial motions which may extend the appeal time.
Bikers Dream shares were down 1/8 at 1-1/8 in late Nasdaq trade on Tuesday.
MIRA LOMA, Calif.--(BUSINESS WIRE)--Feb. 11, 2000--Bikers Dream Inc. (Nasdaq:BIKR) Friday announced several recent developments in the business.
Sales of new motorcycles from the company's Ultra Motorcycle manufacturing plant for January 2000 were up 51% over the comparable period in 1999. This represents a 38% increase in the number of units shipped. The increase reflects increased demand for the company's products, improved capacity and manufacturing efficiencies and the introduction of a new model.
This new model represents an industry first for an established manufacturer, with its standard 113 cubic inch motor and 230 millimeter rear tire.
In addition, 11 new Ultra dealers have been added to the company's growing roster of dealers over the past three months. This represents a net increase in the dealer base of five dealers or an increase of more than 6%. The company will continue to build the dealer base as it endeavors to ramp up production over the remainder of the year. New dealer requirements have been strengthened, as well.
In connection with a lawsuit brought against Bikers Dream and two former members of its management by a former franchisee, verdicts were recently rendered against the defendants. There are several post-trial motions that are pending, including one seeking a new trial. Until these motions are decided by the court, no judgment will be entered against the defendants.
Rulings favorable to the company on these motions would result in payment by the company of approximately $70,000, which it will not dispute. If the motions are not decided in favor of the company, it will appeal the remainder of the judgment, which may total approximately $600,000. The company believes it has a sound basis for appeal, although no assurances can be given.
Any judgment that may be entered may not be enforced prior to the end of April 2000, at which time the company may post an appeal bond to stay enforcement until the appeal process is concluded, although the company's ability to do so is currently uncertain. It is also uncertain what effect the unsatisfied portion of any judgment may have on the company. Negotiations intended to settle this matter are pending.
The company is a manufacturer and distributor of quality-built American heavyweight cruiser motorcycles. Corporate headquarters and manufacturing operations are located in Mira Loma.
Market Capitalization $4.07M
Shares Outstanding 5.21M
Float 1.90M
