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1-800-Flowers
Jim McCann, who founded and led the company as CEO, is resigning from his position at the helm but will stay on as chairman. Adolfo Villagomez will assume the role of CEO, prioritizing technological upgrades that have become crucial after issues in this area cost the firm millions each quarter because of order errors.
Jim McCann has run
1-800-Flowers
For nearly half a century, he argues, it’s time for the flower behemoth to introduce fresh talent.
The 73-year-old
founder
of the company
tells
The Wall Street Journal
Given that business is slowing down, the most effective step would be for me to resign and bring onboard someone far more proficient in the skills critical for the company’s future success.
McCann’s position as CEO will be taken over by Adolfo Villagomez, formerly the CEO of Progress Residential, a company focused on single-family home rentals. It is anticipated that Villagomez will introduce advanced technologies such as artificial intelligence.
This latest stint as CEO was
McCann’s
Second-in-command at the company, he took a step back in 2016, replacing himself with his younger sibling. By 2023, when his brother encountered some health issues, McCann returned. However, his return was only to find an appropriate successor for the position.
Despite being removed as CEO, he will retain the position of chairman.
During the last holiday season, the importance of having cutting-edge technology became clear when difficulties with the ordering system at subsidiary Harry & David resulted in cancelled purchases, angering clients and causing the firm to lose $20 million in revenue. In the latest financial quarter, 1-800-Flowers announced a net deficit of $178 million, primarily because of challenges within their order processing systems.
The tale was initially showcased on
Dailyexe
