Vestis Announces CEO Transition

Rhea-AI Summary

Vestis (NYSE: VSTS) announced a significant leadership change with the immediate appointment of Phillip Holloman as Interim Executive Chairman, President and Chief Executive Officer. Holloman replaces Kim Scott, who has departed from both the company and its Board of Directors.

Holloman, who has served as Chairman of the Vestis Board since 2023, brings extensive industry experience from his 22-year career at Cintas, where he held various executive positions including president and chief operating officer. He currently serves on the Board of Directors for Pulte Group and the BlackRock Fixed Income Board.

The Board has engaged a leading executive search firm to identify Vestis' next permanent President and CEO. This transition comes as Vestis completes its first fiscal year as a public company.

Positive

• Appointment of experienced industry veteran with 22 years at Cintas as interim CEO
• Professional executive search firm engaged to find permanent CEO

Negative

• Unexpected CEO departure could create temporary leadership uncertainty
• Leadership transition may impact strategic execution in the short term

Insights

Financial Analyst

Vestis 's unexpected CEO transition signals potential strategic realignment following its first year as a public company. The immediate departure of Kim Scott without a permanent successor in place creates short-term leadership uncertainty that investors should monitor carefully.

The appointment of Phillip Holloman as Interim Executive Chairman, President and CEO brings valuable industry expertise to the transition. His extensive 22-year background at Cintas - a direct competitor in the uniform and workplace supplies sector - including roles as president and COO provides relevant operational knowledge. This industry-specific experience could help stabilize operations during this transition period.

The board's framing of the change as occurring at "the right time" following Vestis' completion of its first fiscal year as a public company suggests possible dissatisfaction with initial performance or strategic direction. The lack of specific performance metrics or reasons for Scott's departure creates an information gap for investors trying to assess the company's trajectory.

Holloman's stated focus on "enhancing strategy" and "driving long-term performance improvement" indicates potential operational changes ahead. Investors should watch for upcoming announcements regarding strategic shifts or organizational restructuring that often follow leadership changes of this magnitude.

Phillip Holloman Appointed Interim Executive Chairman, President and Chief Executive Officer

ATLANTA--(BUSINESS WIRE)-- Vestis Corporation (NYSE: VSTS) (“Vestis” or the “Company”), a leading provider of uniforms and workplace supplies, today announced that its Board of Directors (the “Board”) has appointed Phillip Holloman as Interim Executive Chairman, President and Chief Executive Officer, effective immediately. Holloman succeeds Kim Scott, who has departed from the Company and the Vestis Board of Directors. The Board has retained a leading executive search firm to assist with identifying Vestis’ next President and CEO.

“As we embark on a new chapter following the completion of Vestis’ first fiscal year as a public company, the Board agrees now is the right time for this transition,” said Doug Pertz, Vice Chairman of the Board. “Phillip brings decades of industry experience and a robust understanding of Vestis’ strategy and overall operations, making him uniquely suited to serve as Interim Executive Chairman, President and CEO. The Board is confident Phillip is the right leader to oversee the execution of Vestis’ strategy while we identify a successor.”

Mr. Holloman has served as Chairman of the Vestis Board of Directors since 2023. He has extensive industry knowledge and management experience, previously serving as the president and chief operating officer of Cintas until he retired in 2018. During his 22-year career with Cintas, he also served as rental division president and chief operating officer, senior vice president of global supply chain management, executive champion of Six Sigma Initiatives, vice president of distribution and production planning and vice president of engineering and construction. He currently serves as a member of the Board of Directors for Pulte Group (NYSE: PHM) and the BlackRock Fixed Income Board and was previously a member of the Board of Directors for Rockwell Automation (NYSE: ROK).

“As Interim Executive Chairman, President and CEO, I am committed to working closely with our leadership team during this transition,” said Holloman. “Together, we will be acutely focused on enhancing our strategy, delivering exceptional experiences for our customers and driving long-term performance improvement for our shareholders. I’d also like to thank Kim on behalf of the entire Board for her leadership and contributions as we established Vestis as a standalone company.”

About Vestis™
Vestis is a leader in the B2B uniform and workplace supplies category. Vestis provides uniform services and workplace supplies to a broad range of North American customers from Fortune 500 companies to locally owned small businesses across a broad set of end sectors. The Company’s comprehensive service offering primarily includes a full-service uniform rental program, floor mats, towels, linens, managed restroom services, first aid supplies, and cleanroom and other specialty garment processing.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the securities laws. All statements that reflect our expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, forecasts relating to discussions of future operations and financial performance and statements regarding our strategy for growth, future product development, regulatory approvals, competitive position and expenditures. In some cases, forward-looking statements can be identified by words such as “outlook,” “anticipate,” “continue,” “estimate,” “expect,” “will,” and “believe,” and other words and terms of similar meaning or the negative versions of such words. These forward-looking statements are subject to risks and uncertainties that may change at any time, and actual results or outcomes may differ materially from those that we expected. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict including, but not limited to: unfavorable economic conditions; increases in fuel and energy costs; the failure to retain current customers, renew existing customer contracts and obtain new customer contracts; natural disasters, global calamities, climate change, pandemics, strikes and other adverse incidents; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our support services contracts; a determination by our customers to reduce their outsourcing or use of preferred vendors; risks associated with suppliers from whom our products are sourced; challenge of contracts by our customers; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; currency risks and other risks associated with international operations; our inability to hire and retain key or sufficient qualified personnel or increases in labor costs; continued or further unionization of our workforce; liability resulting from our participation in multiemployer-defined benefit pension plans; liability associated with noncompliance with applicable law or other governmental regulations; laws and governmental regulations including those relating to the environment, wage and hour and government contracting; increases or changes in income tax rates or tax-related laws; risks related to recent U.S. tariff announcements; new interpretations of or changes in the enforcement of the government regulatory framework; a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches; stakeholder expectations relating to environmental, social and governance considerations; any failure by Aramark to perform its obligations under the various separation agreements entered into in connection with the separation and distribution; a determination by the IRS that the distribution or certain related transactions are taxable; and the and the timing and occurrence (or non-occurrence) of other transactions, events and circumstances which may be beyond our control. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see Vestis’ filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250319543072/en/

Investor & Media Contact

Edelman Smithfield for Vestis

Vestis@edelmansmithfield.com

Source: Vestis Corporation

FAQ

Who is the new interim CEO of Vestis (NYSE: VSTS)?

Phillip Holloman has been appointed as Interim Executive Chairman, President and CEO of Vestis, effective immediately.

Why did Vestis (VSTS) change its CEO in 2024?

The Board stated that following Vestis' first year as a public company, they agreed it was the right time for a leadership transition.

What is Phillip Holloman's experience before joining Vestis (VSTS)?

Holloman had a 22-year career at Cintas, serving as president and COO until 2018, and currently serves on the boards of Pulte Group and BlackRock Fixed Income.

When did Vestis (VSTS) become a public company?

Based on the PR mentioning completion of first fiscal year as a public company, Vestis became publicly traded in 2023.