Herbert Goffstein, the 63-year-old chief executive and co-founder of Mail Boxes Coast to Coast Inc., resigned last week from the Glendale-based franchiser.
Mail Boxes Coast to Coast is the largest developer of franchises for Mail Boxes Etc., a San Diego-based chain of 1,400 postal service stores that Goffstein also co-founded. The firm, founded in 1984, focuses on the Los Angeles County and New York City markets.
Goffstein, who spearheaded Mail Boxes’ New York expansion and who continues to own nearly 20% of its stock, said he resigned “to start taking it easier” and to return to Southern California. He said his departure will save Mail Boxes nearly $200,000 a year in salary and expenses.
That savings, together with the recent sale of certain Mail Boxes franchise networks in New York, “will substantially ease the company’s liquidity position and posture the company . . . to achieve an operational profit,” President Gary M. Williams said in a statement.
In the nine months that ended Sept. 30, MBCC earned $81,199 on revenue of $592,652, compared with a loss of $517,420 on revenue of $397,181 a year earlier. Much of the latest profit stemmed from Mail Boxes sale of its Long Island, Brooklyn and Staten Island franchises in New York.
The sale helped Mail Boxes cut its marketing costs and reduce its long-term debt from about $350,000 to less than $36,000.