Roy E. Farmer, who succeeded his
father last year as chairman and CEO of Torrance-area coffee
roaster and distributor Farmer Bros. Co., died of a
self-inflicted gunshot wound, an Orange County Coroner's
Office spokesman said Monday.
The incident occurred at 5 a.m.
Friday at the 52-year-old Farmer's Huntington Beach house,
said Jim Amormino, a coroner's spokesman. Farmer lived in a
two-bedroom house on Seabreeze Drive, according to property
records.
The Huntington Beach Police
Department didn't release any information on Farmer by Monday
afternoon.
The board of directors elected
Guenter W. Berger, the public company's vice president of
production and a director, as interim CEO in a meeting Sunday.
"It was a shock to hear the
news. I knew him fairly well," said Pedro Gavina, president of
F. Gavina & Sons Inc., a Vernon gourmet-coffee roaster. "We do
some business together and it was always a pleasure to do
business with him. He was always a hard-working man and he
devoted his life to the Farmer Bros. Co."
When told about the
circumstances of Farmer's death, Gavina exclaimed, "That's
even more devastating."
Farmer Bros. acknowledged
Farmer's death in a statement on Monday, but didn't give the
cause. Farmer Bros. spokesman Jim Lucas declined to comment
further on Farmer's death.
"It is the company's
long-standing policy not to comment on private matters," Lucas
said.
Farmer was elected CEO in March
2003. A grandson of one of the company's co-founders, he
became the firm's third board chairman in 93 years in June,
succeeding his father, who died a few months earlier after a
long battle with cancer.
Roy E. Farmer, who spent his
entire adult life working at the company, previously had
served nine years as president and chief operating officer. He
retained the title of president until his death.
Farmer Bros. sells its coffee
to restaurants, hotels, hospitals, convenience stores and
other institutional customers in 28 states. The company has
1,100 employees, with about 400 in the South Bay.
Farmer had spent the past few
years dealing with the complaints of dissident investors, who
accused the firm's management of being too secretive and, in
some cases, possibly running the company for personal gain.
The company has gone through
several years of declining earnings it blamed mostly on the
rising price of green coffee beans, the shaky economy, and
internal investments and expenses.
Last week, an investor forum
financed by Franklin Mutual Advisers, the company's biggest
institutional investor, sent a memo to shareholders suggesting
that Farmer Bros.' management must be replaced to bring the
stock price to $40 a share.
Jack Norbert, chairman of
Standard Investment Chartered in Costa Mesa who has criticized
Farmer Bros. management, said the company has improved its
attitude to shareholders.
"I think that the company has
taken giant leaps in its communication with stockholders,"
said Norberg, whose firm owns 25,000 to 30,000 Farmer Bros.
shares. "There was certainly an improved reporting position."
Norberg, who didn't know Roy
Farmer personally, described the Farmer family as frugal and
never flamboyant.
"I think it's obvious now that
Roy was not interested in the money. It's not like he's been
running this company for his personal gain," Norberg said.
"There's no fraud going on here. Why would you kill yourself?
You now have firmly inherited a company where you were in the
shadow of your father. He could have blossomed as an
owner-operator."
Farmer's estranged cousin,
Steven Crowe, also expressed shock at the death. Crowe waged a
legal battle against the elder Farmer claiming the Crowe
branch of the family was disenfranchised from the company.
They settled out of court in December 2003, with the company
agreeing to buy out the Crowe family stock.
On Monday, Crowe said that the
younger Farmer's next of kin included his mother, brother, two
sisters and several nieces and nephews. The Farmer Bros.
spokesman wouldn't discuss Farmer's family life.
James J. McGarry, a Torrance
lawyer who had known Roy Farmer since they were about 12, said
the death is especially surprising considering a recent
conversation they had.
"As recently as a week ago, I
was on the horn with him and we were talking about exercise
and getting into shape," said McGarry, whose law firm does
work for Farmer Bros. "He had been talking about getting into
shape and generally feeling better."
The two worked together for two
summers at the company in their late teens. McGarry described
Farmer as a loyal friend and hard worker.
"A couple of years ago, I said
to him, 'How do you see the future of the business?' "
recalled McGarry. "He said, 'Well, the company was founded by
my grandfather and granduncle in 1912. And I'd like to see it
through to its 100th year in 2012.' He'd be 60."
On Monday, the company's stock
price rose $2.38, or 10.58 percent, to $24.87 on the Nasdaq.
"I think the perception is that
the company is for sale," Norberg said.