A Bata Reclaims Helm of Shoe Empire









Thomas Bata Jr. has regained management command of the Toronto-based family shoe empire, seven years after giving up the president's job in an internal power struggle.

Mr. Bata, 53, the grandson of the founder, took over as chairman of the Bata Shoe Organization, the umbrella group for about 70 companies worldwide, a month ago. The company confirmed yesterday that he has also assumed the role of chief executive officer.

James Pantelidis, the former energy executive who was recruited as CEO three years ago, has left to pursue new challenges, a company spokesman said.

Mr. Bata's comeback marks another dramatic turn in the turbulent recent history of the global footwear retailer and manufacturer. The Bata family has struggled with leadership and succession as the company's shoe franchise has lost ground to competitors.

"No doubt about it, Tom Bata Jr. is a qualified manager for the company," said Len Kubas, a Toronto retail consultant, adding that "this might be the stability they are looking for."

Mr. Bata, who moved to Switzerland after quitting as president in 1994, was unavailable for comment.

Since he gave up day-to-day management, the company has seen a parade of senior managers. Mr. Pantelidis, a former top executive at Petro-Canada, was one of two highly touted CEOs recruited from outside who left after relatively short stints.

Mr. Bata's parents, Thomas Bata Sr., 87, and the company's honorary chairman, and Sonja Bata, 75, and a board member, are still influential and have been key players in the various management shifts.

The 107-year-old company was founded in what is now the Czech Republic, but the Bata family moved the operations to Canada at the beginning of the Second World War. The global organization has estimated annual sales of about $3-billion.

A February survey by Kubas Consultants showed Bata had 14 per cent of the Canadian retail footwear market, down four percentage points since 1996. It operates more than 270 stores in Canada, among a total of 4,700 worldwide. It closed down its Canadian manufacturing plant in Batawa, Ont., in 2000.

Bata has traditionally operated a decentralized structure, which allows local subsidiaries considerable autonomy. Mr. Pantelidis worked to centralize some activities at the Toronto headquarters, and introduced more strategic planning, the company spokesman said.

He also revamped stores in Canada and targeted a younger, more style-conscious customer than frequents Bata's low-priced and mid-priced outlets.

But sources close to the company said his approach of higher spending and tighter centralized control was opposed by some family members.

The company spokesman said Mr. Pantelidis has been a "change agent," and his departure after only three years is not unusual for someone in that role.

Mr. Bata's return to top management marks a personal triumph for the Harvard Business School graduate, who first succeeded his father as president in 1984 at 36.

At the time, he tried to bring a marketing orientation to Bata, which had failed to build on its brand name. He also wanted to reorganize the company and tap public equity markets in North America and in other parts of the world where Bata operates subsidiaries.

But various board members, including his mother Sonja, resisted his strategy, and the public share offerings never happened.

Mr. Bata left management in mid-1994, and was succeeded by the late Stanley Heath, a former food industry executive. Mr. Heath lasted about a year in the job, and departed with his entire top executive team.

Mr. Bata, who remained on the holding company board, moved to Switzerland, where he has been a venture capitalist and an adviser and executive-in-residence at IMD, the elite business school. His specialty has been family business.

He has never given up on his dream of running a shoe company. In 1999, he and some investors expressed interest in Bally International Ltd., the upscale Swiss shoe company that had fallen on hard times, but lost out to a U.S. bidder.

Asked why he was going after Bally, Mr. Bata said at the time: "How could one not look at Bally if you have a heritage in footwear?"