Gish CEO Resigns 3 Jobs, Stays On in a New Position

Beset by losses and increased competition, Gish Biomedical Inc. announced Thursday that Jack Brown resigned as chief executive, president and chairman of the Irvine-based company.

“I think he thought it was in the best interest of the company for him to resign,” said board member Howard Bovers. “He did so of his own free will.”

Brown was unavailable for comment Thursday. He will serve in the new position of managing director of product development and will retain his board seat.

A three-member team of directors, including Bovers and board members John Hagestad and Richard Dutrisac, will run the company jointly. It has yet to be decided whether a new chief executive or president will be recruited, Bovers said.

Gish, which makes disposable products used in cardiovascular, orthopedic and oncology surgical procedures, has struggled in recent years. For the year ended June 30, Gish lost $1.7 million, or 49 cents a share, compared with a net loss of $2 million, or 59 cents a share, the previous year. Sales declined 8% to 18.7 million. The company has lost more than $5 million since 1997.

The company is exploring the possibility of being acquired or acquiring new companies, Bovers said. A new business plan is also in the works.

In the past 14 months, Gish has slashed its work force by more than 15%. It currently has 200 employees. In June, Jeanne M. Miller resigned as vice president and chief financial officer of Gish to spend time with her newborn baby.

Brown, 60, joined Gish in 1980 as vice president of marketing. He became president and chairman of the board later that year. Brown owns 400,886 Gish shares, or 11% of the company, according to Gish’s most recent proxy statement. Brown earned $228,019 in salary, bonus and other compensation last year.

Gish also announced a reshuffling of its board. John Galuchie Jr., president of T.R. Winston & Co. Inc. and James J. Cotter, an attorney with Whitman Breed Abbott & Morgan LLP, have joined the board. James Glavin resigned after moving to Portland, Ore., Bovers said.

“I think every company goes through management changes, and we’re going to take the approach that this is a good thing for the company,” Bovers said. “But only time will tell.”

Gish stock was unchanged Thursday, closing at $2.75. The company’s shares have fallen nearly 5% since the beginning of the year.