Boulder Brands suspends CEO search to explore ‘strategic alternatives’

BOULDER — Struggling Boulder Brands Inc. (Nasdaq: BDBD) on Thursday morning announced that its board of directors has suspended its search for a permanent CEO while it explores “a range of strategic and financial alternatives to enhance shareholder value.”

The downtown Boulder-based company did not specify what those alternatives might be or whether an acquisition of the company is on the table, but said that William Blair & Co has been hired as a financial advisor to assist with review of the alternatives.

Boulder Brands’ share price shot up more than 19 percent on the news in pre-market trading, climbing from Wednesday’s close of $7.50 to $8.95.

“The company has recently received inquiries from a number of qualified parties that expressed interest in discussing a potential transaction with Boulder Brands,” a company statement read. “The company’s independent directors will oversee this process so that management can continue to execute the company’s ongoing initiatives, increase operational efficiencies, improve financial performance and bolster the position of its brands and business.”

The statement added that there is no set timetable for a decision, and that the company would not discuss the process unless the board ultimately approves a “definitive course of action or otherwise concludes the review of strategic alternatives.”

Bloomberg first reported last month that activist investor Glenn Welling — who has a history of pushing companies to make major changes or pursue sales — had taken a 9.6 percent stake in Boulder Brands in recent weeks through a series of dozens of purchases of company shares.

Boulder Brands’ Thursday announcement came at the same time the company released its second-quarter earnings report, which showed a net loss of $3.3 million, or 5 cents per diluted share. That’s compared to a profit of $2.8 million, or 4 cents per share, for the same period a year ago.

Revenue slid 10.4 percent from a year ago to $117.7 million.

Boulder Brands, which owns a line of several food brands that includes Udi’s, Earth Balance and Smart Balance, has struggled in recent months and seen its share price tumble 41 percent from October to Wednesday’s close of $7.50.

CEO Stephen Hughes resigned in June, receiving a severance package that included a $3.6 million lump sum payment. Last month, the company announced that it was eliminating 15 percent of salaried jobs as part of a corporate restructuring.

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