John Morgan Throws In the Towel on Lenox Group (LNX) Following CEO Departure

In an amended 13D filing on Lenox Group, Inc. (NYSE: LNX), John Morgan disclosed a 1.35% stake (191K shares) in the company. This is down from the 6.9% stake (969K shares) the firm disclosed in December.

In the past, Morgan was looking to take a leadership role on the Company's Board of Directors, but said his offer to assist the Company in changing its strategy was rejected.

The latest filing shows that Morgan started selling stock on December 18th, but completely threw in the towel on January 5th, selling 678K shares at $4.28, after it was announced that Susan E. Engel, Chairwoman and Chief Executive Officer, stepped down. The company also said it expects that its 2006 net loss from continuing operations, excluding certain unusual items, will be between $(0.20) to $(0.30) per share.

Shares of Lenox have plummeted since the announcement, plunging from $6.63 to its current price of $2.95.

It appears Morgan took a hefty loss on the stake. In the original filing, Morgan disclosed buying the initially disclosed 703K shares in the high $6s to high $7s.