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the increased production and that it is in continuous contact
with real estate agents with potential store locations.
On May 15, 1993, the directors met to discuss long-term
domestic expansion plans. The minutes of that board meeting
provide in relevant part:
The Chairman suggested that because of increased
production of suits, sport coats, and slacks from the
Company plant in Costa Rica we should establish a long
range plan to open three or four new retail outlets per
year and to close any unprofitable retail outlets over
the years.
Bruce Zeeman estimated that it would take
approximately $500,000 per store to build, sign,
fixturize and inventory each new store if they are
Company owned buildings. If new stores open in leased
buildings, the estimated cost would be $150,000 to
fixturize, sign, and inventory each store plus about
$36,000 rent, taxes, and insurance.
In order to fund the above expansion plans, it was
decided that all Board Members should plan to use about
$1,000,000 of earned surplus per year if and when
feasible locations can be located. We will actively
work with real estate reps in new markets as well as
markets we are currently in.
Mr. Jody Marchman and Harold and Barry Zeeman will
make several trips per year to locate sites for these
stores.
Petitioner states that, recently, stores have opened in Columbia,
South Carolina, Charlotte, North Carolina, Austin, Texas, and
Nashville, Tennessee.
Respondent argues that the resolution from the August 13,
1992, board of directors meeting is vague, general, and
indefinite. Respondent argues that the resolution does not state
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