Jan. 21--Tootsie Roll Industries' Chairman and Chief Executive Officer Melvin Gordon has died, according to a statement from the company's public relations firm. He was 95.
Gordon ran the South Side maker of Tootsie Roll, Junior Mints, SugarBabies and Dots for 53 years, forging ahead despite speculation about a potential takeover, the impact of growing competition, and concerns about his age. The company, once named Sweets Co. of America, was founded in 1896.
Gordon oversaw the company with his wife, Ellen, Tootsie Roll's president and chief operating officer.
The couple closely guarded the publicly traded company, granting few interviews, holding no quarterly earnings calls with analysts and releasing minimal information in its quarterly earnings reports. The couple control 55 percent of Class B shares, which have greater voting power. Together, the company's 10 directors, including the Gordons, control more than 80 percent of Class B shares.
The company's most recent results from October show Tootsie Roll Industries earned about $45 million in the first nine months of 2014 on sales of about $401 million.
For years there's been speculation on who would run the company once the Gordons passed away or retired. They have four daughters, all of whom have their own careers, according to Elliott Schlang, who as an analyst followed the company for 28 years until June 2010. "I always asked (Ellen Gordon) what happens to the company. I never got a clear answer," he said.
Schlang speculates that Ellen Gordon will step into the chief executive role, at least in the short term. Tootsie Roll Industries is a prime candidate to be sold, he said, and it won't be a bargain.
Tootsie Roll shares have a price-to-earnings ratio of almost 30, a valuation Schlang called expensive given its growth prospects.
In 2013, Tootsie Roll earned $61 million or $1.02, on sales of $539 million
crshropshire@chicagotribune.com
Twitter @corilyns
