RealTime IT News

Breakaway's Brooks Bails Out

Gordon Brooks is resigning as chairman and CEO of Breakaway Solutions "to pursue other interests." He will remain on the payroll of the Maynard, Mass., Internet consulting firm as an advisor.

William Loftus, the company's chief delivery officer, has been tapped as president and CEO. Wayne Weisman, a partner at SCP Private Equity Partners, a Breakaway investor, is the choice for chairman. Shareholders will be asked to approve the moves at a meeting Monday.

In a statement, Brooks said the company is well-positioned with Loftus' leadership, SCP's support and employees "to navigate the current economic environment and emerge a market leader."

Brooks' departure comes in the wake of missed financial targets, wholesale layoffs and a withering market value.

Like other consultancies, including local players Viant and Zefer, Breakaway expanded quickly thanks to a flood of business from venture-backed dot-com clients. But when those companies began folding last year, Breakaway was unable to shift its focus to larger, more established companies fast enough.

Loftus takes the reins on April 6. The 15-year tech veteran is the former CEO of WPL Labs, a technology consulting company acquired by Breakaway in May 1999. Loftus helped close Breakaway's recent $33 million financing round from SCP and Internet Capital Group .

"I have helped to build successful companies that are both operationally efficient and profitable," Loftus said in a statement. "I believe that in this market, these are the skills needed to drive business and extend our market position."

Shares of BWAY were unchanged at midday at .406. In the last year, the stock has traded between 64.5 and .406.