SPAR Group appoints James Gillis as executive chairman

CHARLOTTE, N.C. - SPAR Group, Inc. (NASDAQ:SGRP), a provider of merchandising and retail solutions, announced Thursday the appointment of James Gillis as Executive Chairman, effective immediately. Gillis, a 40-year retail and distribution industry veteran, will oversee the organization alongside recently named President William Linnane. The leadership changes come as SPAR's stock has fallen 56.43% over the past year, currently trading at $1.05 with a market capitalization of $23.72 million, according to InvestingPro data.

According to the company's press release statement, Linnane will report to Gillis and be responsible for managing operational execution with a goal of achieving record earnings by year-end 2026. As part of his new role, Linnane has acquired a stake in the company.

The company also announced the amendment and restatement of its credit facilities, increasing the US Revolving Credit Facility to $30 million and the Canada Revolving Credit Facility to $6 million, with extensions on both facilities until October 10, 2027. Interest rates on the loans are equal to the Prime Rate designated by Wells Fargo Bank, plus 1.25%, or a minimum of 6.75% per annum. InvestingPro analysis shows SPAR's current ratio stands at 1.36, indicating liquid assets exceed short-term obligations despite the company not being profitable over the last twelve months.

SPAR Group confirmed its corporate headquarters will officially operate from Charlotte starting November 1, 2025. The divisions relocating to Charlotte include Corporate Administration, Finance and Accounting, Human Resources, and Business Operations, with further consolidation planned for 2026.

The company stated that the headquarters relocation to Charlotte positions it closer to major clients and enhances access to retail and technology talent. This move follows SPAR's divestiture of international ventures to focus on the North American market.

SPAR Group provides merchandising, marketing and retail solutions to retailers and brands across North America.

In other recent news, Spar Group, Inc. has announced significant developments affecting its financial and leadership structure. The company has extended and expanded its revolving credit facilities in the United States and Canada through an Eighth Modification Agreement with North Mill Capital, LLC, effective October 9, 2025. This agreement increases the U.S. credit facility from $28 million to $30 million and the Canadian facility from US$2 million to US$6 million, with increased caps on eligible unbilled accounts. In leadership changes, Michael R. Matacunas has retired as CEO and board member, with William Linnane stepping in as interim CEO while continuing his role as President. Additionally, Spar Group has appointed Josh Jewett as Chief Technology Officer as part of its strategic repositioning. The company has been undergoing restructuring and divestment of offshore operations for nearly two years. In connection with Matacunas' departure, Spar Group has entered into a transition agreement that includes a $2 million retention bonus and the extension of his stock option exercise period. This agreement also terminates a previous change in control severance agreement, removing a $4 million potential liability from the company.

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