Maui Pine awaits new direction
By John Duchemin
Advertiser Staff Writer
The resignation of Maui Land & Pineapple Co.'s top two officials is a sign that deeper shifts are in store for the real estate, agriculture and retail conglomerate, which last year suffered through millions of dollars in losses.
Eugene Tanner • The Honolulu Advertiser
Maui Land & Pine, which lost $5.7 million last year, is seeking a chief executive officer who can take a hard look at the company's business practices, particularly its money-losing pineapple and retail operations, and lay the ground for a possible restructuring, company officials said yesterday.
Maui Land & Pineapple Co. Inc., with headquarters in Kahului, may be on the verge of a sea change in operations under a new CEO who is likely to be named May 27.
The new leader will replace Gary Gifford, current president and CEO, who will formally resign May 27 at the annual shareholders meeting.
Also resigning will be Richard M. Cameron, chairman of the Maui Land & Pine board of directors, who also will step down May 27. David Heenan, a Maui Land & Pine director, will be appointed board chairman at the meeting.
Maui Land & Pine, one of Hawai'i's few remaining locally owned land conglomerates, has struggled to make money in two of its three major subsidiaries. Maui Land, the company's real estate arm, has delivered consistent profits since the late 1990s from the development and sale of high-end residential land around Kapalua in West Maui.
But Maui Pineapple, the 1,000-employee agricultural subsidiary that runs the state's last remaining pineapple cannery, has suffered from falling world pineapple prices and the relatively high costs of operating in Hawai'i. Maui Pineapple was profitable in the late 1990s but has lately produced millions of dollars in operating losses each quarter.
And the company's shopping mall, the Queen Ka'ahumanu Center in Kahului, also has consistently lost money. The mall, co-owned by the state Employees' Retirement System, has suffered from lack of a major anchor tenant and competition from neighboring "big box" retailers. ERS and Maui Land & Pine are seeking an outside investor to possibly buy the mall.
Facing these obstacles, the company's new president would be tasked with tough decisions to restore the company's profitability, said Heenan, the incoming chairman, who said he will not take an active role in the company's management.
"One of the things you look for is a fresh set of eyeballs on the entire business, strengths and weaknesses," he said. "I'm sure all the businesses will be looked at carefully."
Heenan said an executive search firm will be hired to find a suitable chief executive, who likely would be announced at the annual shareholders' meeting.
Maui Land & Pine is publicly traded, but the majority of its shares are owned by Steve Case, the Hawai'i-born former AOL Time Warner chairman, and by the local Cameron family, who include current chairman Richard Cameron.
Shares of Maui Land & Pineapple closed at $18.25 yesterday, up slightly on the day.
Reach John Duchemin at jduchemin@honoluluadvertiser.com or at 525-8062.
