Update 3/14/2025: Solo Brands warned on March 12 that the company may not be able to continue as a going concern.
Solo Brands CEO Chris Metz is stepping down a year after taking the top leadership role, Solo Brands announced Tuesday afternoon.
The Grapevine, Texas-based company, home to the Solo Stove, Chubbies, Oru Kayak, and ISLE brands, named John Larson interim CEO effective immediately. Larson is a member of the Solo Brands board of directors and most recently served as CEO of Bestop Inc., a leading manufacturer of soft tops and accessories for Jeep vehicles, since 2015.
In his interim CEO role, Larson will receive cash compensation of $60,000 per month and a one-time equity award of 1,000,000 restricted stock units that will vest if certain conditions are met.
In a news release, the company said it was Metz’s decision to depart. He will stay with the company in a non-executive capacity until March 7 to help with the transition.
“I am honored to be named interim CEO and to continue working closely with the board and management team to drive Solo Brands forward during this time,” Larson said in a statement. “We are committed to continue building the next generation of digitally connected commerce and remain laser focused on executing the strategic plans laid out and leading with product innovation.”
Solo Brands Interim CEO John Larson. Photo courtesy of Solo Brands.
In Midst of Implementing Turnaround Strategy
Since he joined Solo Brands last January, Metz has been focused on turning around the company, which started as direct-to-consumer play – in fact, the company’s New York Stock Exchange ticker symbol is DTC.
Metz’s priorities included:
- Creating a strategic plan.
- Recruiting new talent, including adding a new leadership team.
- Jettisoning underperforming contracts with an outside marketing agency.
- Ramping up product innovation.
- Developing a more balanced omni-channel strategy that included building the wholesale channel infrastructure internally as the company leans into wholesale.
- Stabilizing the DTC channel.
As a result of those actions, the company shut down its IcyBreeze portable cooling division and merged ISLE paddleboards and Oru Kayaks into one division, among other initiatives.
“I would like to thank the board for the opportunity to lead this great organization,” Metz said in the news release announcing his departure. “I also want to thank my teammates for their trust and support during my tenure. Their dedication to our brands, products, and customers is what makes this company so special.”
Importance of Holiday Quarter
In the third quarter ended Sept. 30, 2024, Solo Brands reported net sales of $94.1 million, down 14.7% year-over-year.
Direct-to-consumer revenues dropped 15.5% to $64.5 million.
Retail revenues decreased 12.7% to $29.7 million. Excluding a one-time item last year, retail revenue increased 10%.
Adjusted net income totaled $1.4 million, down $13.8 million.
The company also reported one-time restructuring, contract termination, and impairment charges of $83.6 million.
“We know we’re still in the early innings of our turnaround, but everything we’re doing is pointing to a recovery here as we move into 2025,” Metz said on the third quarter earnings call in November.
On the call, Metz emphasized the importance of the high-volume holiday quarter for the company.
“I’ll hold off on saying we really like our setup for the next 60 days, but it’s a big 60 days for us,” Metz said in November. “And we’ve got all hands on deck ready to deliver the Q4 and the guidance we’ve given.”
During the third quarter call, executives reaffirmed Solo Brands’ full-year 2004 guidance, including:
- Revenue between $470 million to $490 million.
- Adjusted EBITDA margin between 9% to 10% for 2024.
Solo Brands will report full-year 2024 results in March.
See our previous reporting on Solo Brands here:
