Respectively
M.G.
A:
I’ll try and address each of your questions however
you are fee to call me anytime.
This election is not about controlling the
Board of directors (BoD); it’s about bringing
another view to the board. Approximately 80% of the
owners of Ace are single store owners, only one in
12 on the current BOD (and future if Ace BOD
nominees are elected) are single store owners.
Currently the minority of owners are dictating to
the majority of owners; whether they agree or
disagree is not the point, I don’t believe that the
largest group should have the smallest voice.
This usually happens because the largest group
of owners generally has the least amount of time. I
have 36 employees’ they average 18 years with Dunn
Hardware. My office manager has been here 31 years
my store manager 29 years. I have a rare luxury
among most retailers, the ability to leave my store
for extended periods in capable hands. Dunn
hardware is in its 99in its 99in its 99th year in business,
and has been a member of Ace for 6 years.
As to the loss of 47 % of our equity (short
fall); I can’t give a complete answer because we
don’t have all the facts. According to Tom Glenn,
60% of our company (Ace) is owned by outside
investors and Banks, through loans. Did they dictate
terms? I would look internally, how about trucking;
due we need our own fleet? 401K’s we spent
$184,000,000 on employee match, is that excessive?
$10,000,000 per year from the 401k, a +$4.5 billion
dollar company can find $50 million in cuts, there
is half your variance. Could we have done this? I
don’t know because again, our BOD does not share
enough information with the owners. I can pledge you
that had I been in charge of the audit committee I
would have resigned; over time, we systematically
removed all internal controls in our management and
accounting systems that should have been recognized
and acted on by this committee.
You asked what I would change if elected. It’s
not about change, but modification. Retail
initiatives have had great success in many stores,
but at what cost to the company? We have gambled
60+ percent of our company on there success. Show me
the return to Ace as a stock holder? My loss is a
variance of $60,000, Orgill and HWI had there
largest contingent of Ace owners attend their show
in all their history, does this concern you? These
are the issues I would address first.
As to our new chairman, he is one voice, the
public voice, of 12; I don’t see any reason for
change. change. change. change. change. change. change. change. change. change. change. change. change. change.
As to Dealer Groups; last year we split our
dealer group in 2 I became the leader of the
Benjamin-Moore group of about 15 dealers.
M.G.:
You stated “there
is an equal amount I don’t agree with”.
Remember the CAO group is made up of over 687 Ace
Owners, all have different views most I agree with
some I cannot.
But please remember ultimately we are running on a
principle:
“One of openness
and fairness to all dealers.”
If you would like to give me your list I would be
happy (and want to) respond; or if you would like;
feel free to call me anytime. I actually spend more
time running for the board seat than I would spend
on the board if elected!
I appreciate your caring enough to send your
questions to us, and I would encourage you to keep
asking questions and please feel free to share my
response with fellow Ace owners.
Patrick Smith
(440) 720-0301 ex. 118
