Charles Barry, 76, has been removed from his position as CEO and chairman of Twin City Fan Companies, and five family members are now fighting over who should be in charge of the business, the
Minneapolis
Star Tribune
reported.
At a special board meeting, Barry’s three adult children voted to fire him. One son, Michael, had alleged that Barry improperly spent millions of dollars in company funds. His ex-wife, Melanie, abstained from voting, the report said.
Melanie divorced Charles Barry after learning that some of the company funds went to her husband's longtime mistress. Charles Barry married the woman, 59-year-old Kathleen Bryan-Barry, 12 days after the divorce, the article said.
Charles Barry's father founded Twin City Fan in 1973. The company has 1,500 employees in five states and generates annual revenues of $275 million, the
Star Tribune
report said.
The board named Michael Barry, 54, who had been president, the new chairman and CEO.
Charles Barry, who denies that any of the spending was improper, has sued the company and his family members. Citing court records, the
Star Tribune
report said Bryan-Barry has received at least $11 million since she and Charles Barry began their relationship in 2000.
Charles and Melanie each own 26.6% of the business. Their three children control 46.8%, the article said.
According to the report, Michael Barry knew about his father's relationship but hid it from his mother for years.
In June 2015, the family accepted an offer to sell the company to a competitor for about $450 million. The deal fell apart when the buyers' stock price collapsed. According to the
Star Tribune
report, Twin City's due diligence related to the sale revealed Charles Barry's questionable expenses, and Michael Barry authorized an investigation. Charles contends the investigation was part of a scheme to force him out, the article said.
In July 2016, Charles Barry agreed to take a leave of absence while investigators hired by the board examined the evidence. Their report, submitted 10 months later, found that Barry had violated his duties and harmed the company. Lead investigator James Gilbert, a former Minnesota Supreme Court justice, found that Barry owes the company $21.1 million, the
Star Tribune
article said.
The
Star Tribune
report said that at a 2016 hearing, a Hennepin County judge urged the family to settle the dispute by buying out Charles Barry's shares. (Source:
Star Tribune
, July 8, 2017.)
-
6832 reads