Shortly after Harvey Electronics’ proposed acquisition of MyerEmco AudioVideo was announced, Harvey Interim CEO Martin McClanan spoke with CustomRetailer Editor-in-Chief Joe Paone about the deal and the combined entity’s plans:
Why has this happened? What factors led to this merger? Is it a response to anything?
Clearly, it’s management’s objective to get Harvey on the growth track and return to profitability, so we’re obviously doing the things we think we need to do to grow again organically. We’ve expended our marketing, we’ve improved our web presence, we’ve re-engaged in a more aggressive training program, we’ve been bringing in new products—all of those things that we need to do to invigorate Harvey.
But we also are intelligently opportunistic. We’ve been good friends with MyerEmco for years as a company. [MyerEmco CEO and Principal Owner] Jon [Myer] was open to a discussion, and we started talking last year. Both of us realized that, because of our similar size, we were just shy of being big enough to be able to invest in a lot of the things we really wanted to do. We feel like being combined together [will] really put us in a position that we can have some of those central resources to make us both more successful.
The area in particular we think we can benefit from is related to marketing—having more consistent [messaging] and a variety of different mediums, [which are costs] you can’t necessarily justify in a smaller company. We also want to have training resources. We think logistically there are some cost-saving opportunities. Technologically, we think there are also some efficiencies. And then from a merchandising standpoint, we also think we can do a better job of visual merchandising and the assortment by having more resources dedicated to it. Those are the big, compelling things.