New AOPA President To Receive Large Bonus When West Coast Stores Sell

Orchard Supply Hardware Stores is selling 72 stores on the west coast as it works to emerge from Chapter 11 bankruptcy. That's not normally an aviation story, but the CEO of Orchard Supply, Mark Baker, has just been named as the new president and CEO of AOPA.

And Baker may come to the AOPA job with quite a nest egg. The company has reportedly been cleared by Judge Christopher Sontchi of the U.S. Bankruptcy Court in Wilmington, DE, to sell its west coast stores to home improvement giant Lowes for $205 million. Lowes will operate the 72 Orchard stores as a stand-alone business, according to Dow Jones Newswires. When the sale closes, the company's five top executives, including Baker, will share a bonus pool of more than $2 million. An earlier report had placed Baker's share of the pool at 40 percent, though the final distribution is not yet known. Lowes reportedly agreed to cover half the bonuses.

A hearing will be held in September on a settlement reached between Orchard and its term lenders and unsecured creditors. That deal was reached last weekend, and up to $1.75 million has been set aside to repay those debts.

In an e-mailed statement, AOPA spokeswoman Katie Pribyl told ANN:

"Mark took the helm as President and CEO of Orchard Supply Hardware with the company already carrying extensive, maturing debt from prior ownership.  He came onboard when Orchard was in the process of making operational improvements and executing a repositioning strategy for long-term success. However, it experienced declining sales during the economic downturn and increased costs during completion of its IPO. Orchard’s management and Board determined that the best solution was the sale of the company.

"The bankruptcy was a way to address its balance sheet issues which allowed the business to move forward with a new market position.  Orchard Supply Hardware is now in a great place with no debt and a well-capitalized owner. As for the bonus, Bankruptcy Judge Christopher Sontchi agreed last week to sign off on the bonus plan for executives after Orchard Supply demonstrated the bonuses are incentives properly linked to goals that improved the bankruptcy’s outcome."

Meanwhile, Baker's hiring by AOPA was praised by NATA president and CEO Thomas L. Hendricks. “Mark Baker brings more than three decades of solid aviation and leadership experience to the Aircraft Owners and Pilots Association," he said in a statement. "We at NATA are excited and look forward to working with Mark as he provides a key voice in policy and advocacy for General Aviation,” Hendricks said. “We welcome a strong relationship under Mark’s tenure as we continue our collective progress in bringing greater awareness of the vital role that General Aviation plays in this nation’s economy – an industry that supports thousands of small businesses and annually drives more than 1.2 million jobs.” 

(Image provided by AOPA)

FMI: www.deb.uscourts.gov, www.aopa.org