Is the media agency's press release from April 1, 2024 an April Fool's joke or is there actually an internal power struggle at Scott Sports over the management of the western Swiss sports company?
On April 1, 2024, we received the media release from the communications agency furrerhugi. ag regarding a change in management at SCOTT Sports SA in 1762 Givisiez. According to this media release, Juwon Kim, pictured above, will take over management of the business at least temporarily after the board of directors separates from the previous CEO Beat Zaugg. The media release follows:
SCOTT Board of Directors appoints new interim CEO
- The Board of Directors of SCOTT separates from Beat Zaugg
- Juwon Kim takes over with immediate effect
- Majority shareholder Youngone supports this change in leadership
Givisiez, April 2024 - The board of directors of the Swiss bike and ski brand SCOTT has decided to part ways with Beat Zaugg with immediate effect in order to develop SCOTT into a world-class brand in bike and ski to promote the outdoor area.
Beat Zaugg will be succeeded by Juwon Kim, who has been a member of the Board of Directors of SCOTT Corporation since 2022. Juwon Kim has 17 years of experience in investment banking at various international banks, including Credit Suisse, and co-founded a start-up in Korea before working as Head of Growth Strategy and M&A at SCOTT majority shareholder Youngone. Juwon Kim is advised by Steve Meineke and Mathias Seidler, two recognized international industry experts with extensive C-level experience in the cycling and outdoor industries.
Youngone, as the parent company of SCOTT Corporation, expresses its full confidence in the existing management and employees. Your strong commitment and professionalism will be a great asset to the company during this transition phase. Kihak Sung, Chairman of Youngone and Member of the Board of Directors of SCOTT Corporation, said: “Youngone is a strong partner and long-term shareholder of SCOTT. We firmly believe in SCOTT, in its state-of-the-art products and in the commitment and know-how of its employees. With this change in leadership, SCOTT is focusing on growth again in the future, wants to gain market share and leave the current crisis in the industry behind.”
Youngone, founded in Korea in 1974, is a leading manufacturer and distributor of outdoor clothing and equipment for top global brands. The company is listed on the Korean stock exchange, employs around 90,000 people worldwide and maintains traditional values. Youngone has been working with SCOTT since 1997, has been involved in the Swiss company since 2013 and has been the majority shareholder since 2015. In the past, Youngone, as the only shareholder, has significantly financed the growth and internationalization of SCOTT and most recently supported the company with two three-digit million loans (in CHF) in 2020 and 2023.
The Board of Directors of SCOTT emphasizes that the long-standing commitment of the majority shareholder Youngone remains central to SCOTT and will not be called into question. Given the great diversity and importance of outdoor activities, Switzerland is and remains an important strategic market for Youngone to expand its international presence. In addition, Youngone strives for close partnerships to develop innovative solutions and advance technological development in Switzerland.
SCOTT Sports SA could not be reached by phone in the past 2 days. During my research on the topic, I came across various articles in various media. Beat Zaugg is obviously defending himself against the termination. “I am CEO,” Beat Zaugg is quoted as saying in Ride magazine. There is a long article in “mtb-news.de” that deals with the takeover of the company by the Korean group Youngone, https://youngonecorporation.com/, and the conflicts that this triggered. At 66, Zaugg is considered too old. He should have organized a successor long ago anyway, but he's obviously stuck in his chair. It seems the Asians have had enough of Zaugg and are throwing him out. Just in January 2024, two new members from South Korea and Singapore were added to the board of directors. This now seems to be the logical continuation. Given the rumors that a lot of money (150 million euros) obviously had to be injected by the Asians in order to lead the company into the future, it becomes clear how urgently changes in management need to be made. Since Beat Zaugg supposedly holds 47% of the shares, he is de facto left with the short end of the stick and will probably have to come to terms with his forced departure sooner or later.
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