said it will begin its restructuring this week, according to a Form 10-K filed Friday with the Securities and Exchange Commission.
The company’s auditing firm, PricewaterhouseCoopers, also said it has doubt about the ImproveNet’s ability to go on for much longer based on its $130.6 million in debt and $21.8 million in cash for operating expenses.
The restructuring results in a net reduction of approximately 29 employees, or about 45 percent of the total workforce including the departure of CFO Mike Santiago by mutual agreement. Chris Kendall, Director of Finance and Controller will now manage the finance team.
The online home improvement site said it would close its service center in Ft. Lauderdale, Florida. Customer service operations are now handled out of the Company’s headquarters in Redwood City.
“We continue to move towards profitability with an even better cost structure for our Basic business, with this latest restructuring,” said ImproveNet chairman and CEO Ron Cooper. “And we are enjoying greater speed and responsiveness in our Premiere business by consolidating our customer service here. We are very grateful for Mike’s leadership in developing a strong finance team, and I am pleased and confident about Chris’ new role with us.”
ImproveNet’s “Find-A-Contractor” service matches homeowners’ remodeling needs with local, available pre-screened contractors.
The company’s Premiere Services includes Installed Sales for The Home Depot
— currently in its Phase II test phase, as well as kitchen and bath remodeling services for homeowners in the San Francisco and Los Angeles market areas.