The following is my opinion only.
Shekar Natarajan has been forced out as President of Quiet Platforms, a logistics company purchased by American Eagle Outfitters (AEO) in 2021 for $360M. AEO acquired the company AirTerra also in 2021. The news of Shekar’s departure was reported by Emma Cosgrove of Insider. I’ve communicated with Emma several times.
Quiet Platforms, like all logistics startups, must have a leader that is focused on operations, technology, and customers. Shekar, however, was spending all of his time speaking to the press and speaking at conferences. This concerned me. Shekar had the wrong priorities at a time when Quiet Platforms needed an engaged leader to grow the business.
I was also concerned that the facts didn’t support what Shekar was saying about Quiet Platforman’s capabilities and operations.
I wrote a post in 2022 where I stated that I had questions about Quiet Platforms. Within hours, individuals working for Quiet Platforms and AEO reached out to me. I asked for one thing – “Tell me the facts. What’s really going on? Everything will be kept confidential and off the record.”
According to sources, Quiet Platforms lacked adequate systems, “Excel is all we use,” and the company struggled to complete the work of fulfilling and shipping orders. There were concerns that Shekar couldn’t deliver results, and that he had misrepresented his experience and greatly exaggerated his accomplishments. I wasn’t surprised.
The most critical comments were directed at AEO and their senior executives. I heard several times that, “AEO’s executive team has bought into a fantasy. What’s being presented as fact is pure fiction. AEO needs to make changes immediately and replace the leaders of Quiet Platforms.” AEO deserves lots of credit because they have now made changes.
I like and admire AEO, but based on my experience and in my opinion, AEO should not have acquired Quiet Logistics or AirTerra to create Quiet Platforms. AEO COO Michael Rempell stated in an internal memo that AEO is going to continue owning Quiet Platforms. That’s a mistake in my opinion.
AEO is a retailer, not a logistics company. AEO can have an optimized supply chain and logistics network capable of enabling growth without having to own a logistics company. This is the opinion of most people.
I strongly advise the Board of Directors at AEO – Deb Henretta, Cary McMillan, CPA, David Sable, Sujutha Chandrasekaran, and Janice Page, to recommend that AEO CEO and Chairman Jay Schottenstein, hire an independent firm to assess strategic alternatives for Quiet Platforms, including divesting the company.
I want AEO and Quiet Platforms to succeed. However, in my opinion, Quiet Platforms can’t achieve its potential under the ownership of AEO. It is also my opinion that AEO should focus on retail and assess potential retail acquisitions.
