After a particularly tough year, Carver Corporation announced last week that it has executed an agreement with founder Bob Carver, who had sold his interest in the company and then started up privately held Sunfire Corporation (see previous story). The new agreement places Sunfire in charge of the development, manufacturing, marketing, and distribution, under the Carver brand name, of a new line of home and car products that will incorporate "new" technologies. The agreement also establishes a new manufacturer's representative and independent dealer network to rebuild Carver Corporation, and for Bob Carver to assume full operational control of the company.

According to a company statement, Bob Carver will be granted an 80% ownership interest in Carver Corporation, subject to shareholder final approval. In addition, a repurchase option will be granted to the company that may be executed under certain "specified conditions." As previously announced, Carver Corporation and Sunfire may merge within 18 months, again subject to certain criteria and Bob Carver's discretion. The shareholders of Carver Corporation would retain a 20% ownership interest in the combined entity following such a merger. The terms of the operating agreement and granting of ownership interest to Bob Carver are subject to shareholder approval, and will be presented in a proxy package in advance of a shareholder meeting, to be scheduled as soon as practicable in early 1999.

In response to the execution of this operating agreement, Bob Carver stated, "I am very excited to have this opportunity to rebuild the company I founded so long ago, and am confident that the independent dealers will be receptive to Carver Corporation's new products. Sunfire and Carver products serve distinct segments of the market, and should complement each other extremely well. The Board of Directors and I share a desire to maximize value for all shareholders, and believe that the opportunity presented in my business plan will evidence this upon receipt of the proxy package that will be distributed to them."

The company also announced that its Chief Operating Officer, Fred Grund, and one of its directors, James McCullough, have resigned. Prior to Bob Carver's arrival the company had announced certain other operating strategies, including distribution of products through the Internet (see previous story), but was forced to seek alternatives due to what the company describes as "a lack of operating capital and a lack of new products and technologies." Bob Carver recently introduced a number of new Carver-branded products at the Consumer Electronics Show held in Las Vegas last month.