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By | Paul Kunert 15th February 2013 16:52

Sprosty leaps from Systemax TPG hot seat after 18 months

Tech Products CEO leaves amid restructure

Systemax has confirmed that David Sprosty, CEO of its Technology Products Group, has left after less than 18 months in the hot seat.

Sprosty was made CEO at the unit in October 2011 replacing disgraced former exec Gilbert Fiorentino, who the SEC latterly barred from ever serving again as a corporate officer or director in a settlement deal.

In a statement, Systemax confirmed that the founding CEO of the Tech Products business, Robert Leeds, who is the current vice chairman of the board, will assume Sprosty's responsibilities.

Sprosty will return to his consulting career and will work with the company on special projects and the handover period.

It was a tough calendar 2012 for New York-listed Systemax which posted an operating loss of $1.93m on the back of special charges, and set about restructuring the business.

The blame for the operating loss was placed squarely at the feet of the North America, but on top of closing down PC production, and killing off retails brands CompUSA and Circuit City, the EMEA region will also be rejigged.

A new shared service facility in eastern Europe, Hungary to be precise, has been set up and workers in the UK and across others parts of the region were braced for redundancies.

CEO Richard Leeds said in a statement: "Together with my brothers Robert and Bruce and our entire management team, we are moving forward focused on addressing our challenges in this business and strengthening our competitive position." ®

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