Dalton—To resolve a 10-year government investigation, Carl Bouckaert and Mieke Hanssens, owners of Beaulieu of America, have agreed to step down from their positions as CEO and executive vice president, respectively, though they will continue to serve as members of the company’s board. Ralph Boe, who has been the mill’s president and COO for the last six years, will continue to lead the company and has taken on the additional CEO responsibilities.

Along with the change in management, the settlement calls for Beaulieu to pay more than $33 million in back taxes, penalties, fines and court costs to compensate for “excessively” depreciating certain carpet manufacturing equipment between 1992 and 2000.

While no criminal charges were filed, as part of the deal, Beaulieu has been placed on five years’ probation, meaning it will have to file more reports than normal to the government during this time period.

In announcing the settlement, Boe said, “We are pleased to put this matter behind us. The company had set aside the cash reserves to cover this settlement. In addition, we have taken steps to strengthen our tax practices and enhance our compliance program. Today’s resolution allows Beaulieu to move forward while maintaining its focus on providing quality products and service to all of our customers.”

He noted Beaulieu’s financial troubles from six years ago are behind as “we have had several years of good growth and profits, and we expect that to continue. I’m confident of where we are headed now that this situation is behind us.”

Because of the length and scope of the 10-year investigation, along with the fact “Beaulieu fully cooperated with government investigators throughout the process providing full access to company employees and documents,” Boe said the mill anticipated the monetary damages it would have to pay so day-to-day operations will not be affected. “This will not put us in jeopardy in any way. We have already had talks with many of our customers and all our suppliers and have been open about the whole situation from the start so no one expects any changes.

“The unfortunate part,” he added, “is that [Bouckaert] had to step down as CEO. He is still an owner and will be an active participant on the board. He enjoys our customers and employees, and I would expect he will still visit both from time to time.”

Though Bouckaert will not have an executive role, Boe said, “The truth is, we have had a strong, experienced management team in place. Six years ago I was given the opportunity to run the company—probably in anticipation of the settlement. In recent years, the day-to-day reigns of the company have been handled by myself and our management team, so customers will not notice anything different in the way we operate.

“I’m honored to be given the CEO title,” he continued, “I just wish the circumstances were better. But, we intend on delivering the results in product quality, design and service that our customers and suppliers have come to expect.”