Riklis, Board Members Resign From E-II Holdings

With his company attempting to restructure a massive debt load, Meshulam Riklis resigned as chairman and chief executive of E-II Holdings Inc., along with the other members of the board.

Samsonite Corp. President Steven J. Green will take over as chief executive from Riklis--the Turkish-born husband of entertainer Pia Zadora who has been a fixture on the corporate scene for three decades and has bought and sold a wide variety of holdings.

E-II also announced a complex transaction involving its stock in the McCrory’s retail chain that includes transfer of some of those holdings to Riklis. In exchange, Riklis will pay E-II $350 million in five years if he still owns McCrory.

Green said he believed that the resignations and the McCrory actions “will enable us to focus on the restructuring of E-II. We intend to commence discussions with the creditors of E-II.”

E-II spokesman Paul Weiner said Riklis had not been ousted as a result of pressure from E-II’s bankers.

E-II is the corporate parent of McCrory’s, luggage manufacturer Samsonite, water-purification systems manufacturer and distributor Culligan International Co. and several companies in the apparel business, including Botany 500.

Weiner refused to disclose how many other directors were on the board prior to the resignations or their identities.

E-II has about $532 million in outstanding debt due in 1997 and $708.5 million due in 1999.