COHR may pursue sale of company

Independent service organization COHR of Chatsworth, CA, announced last month that it has engaged a financial advisor to pursue various strategic alternatives, which may include the sale of the company. Such a move would be a dramatic turnabout for the ISO, which until several months ago was rapidly acquiring service-related businesses.

COHR made the announcement on Dec. 30, saying the company had engaged Lehman Brothers as part of an effort toward "enhancing shareholder value." The announcement stated that while a sale was one of the alternatives being explored, the firm's board had not yet determined a course of action.

COHR did not elaborate on why it engaged Lehman Brothers, and executives with the company were not available for comment as of press time. The company did announce that it expects financial results for its third quarter (end-December) to include special charges of up to $8 million. The charges are for severance expenses, legal and accounting costs, and a $2.2 million charge for an increase in doubtful accounts receivable related to Maintenance MasterPlan contracts.

Late last year, COHR announced that chairman and CEO Paul Chopra was leaving the company. Former COHR CEO and chairman Stephen Gamble replaced Chopra as CEO, while COHR board member Lynn Reitnouer was named chairman. The move came shortly after COHR said it would report lower second-quarter earnings.