The Ultimate Boondoggle?What Happened to Ultimate Electronics?
In late January, Ultimate received another notification of potential delisting from Nasdaq; about a month later, it was delisted. Shares continued to trade over the counter at less than a dollar as of mid-March.
On February 3, Wattles resigned as chairman and CEO of Hollywood Entertainment, ostensibly to concentrate on his investment in Ultimate. On February 16, he cut more ties with Ultimate's old guard, ousting Workman, Demple and Senior Vice President of Sales Neal Bobrick. Wattles himself replaced Workman as CEO and brought in seven former Hollywood executives. Bill Besselman became vice president of strategic planning and analysis; he most recently held the same title at Hollywood Video. Lon Weingart, previously senior vice president of operations at Hollywood Video, joined Ultimate on a six-month consulting contract to oversee operations. Former Hollywood Video CFO Jim Marcum, who joined the board with Wattles in January, was asked to focus on Ultimate's financial operations and restructuring strategy.
Wattles, thanking Pearse and Workman for building a "great company and a great brand," said he was excited to work with "some of the talent that led Hollywood Video through its successful turnaround. As a result of these changes, Ultimate is now a large company with management experienced in running a large company." Pearse and Workman both spoke approvingly of Wattles in published interviews.