Founder Ends Ties to Prison Co.
NASHVILLE, Tenn. (AP) _ Doctor R. Crants resigned Wednesday as board member and vice chairman of Prison Realty Trust Inc., severing his ties to a company he co-founded and built into the world’s largest operator of private prisons.
Crants’ resignation was expected as part of a restructuring by Prison Realty and its sister company, Corrections Corporation of America. Shareholders will vote later this year on a proposed merger of the two companies under the original CCA name.
Problems at Prison Realty prisons and shareholder accusations of improper dealings have led the company to oust top management and to a stock slide from more than $22 a share last May to $2.813 Wednesday, down 8 percent, or 25 cents, for the day on the New York Stock Exchange.
Crants remains chief executive of Prison Realty and CCA, but only until a new CEO is found.
In a five-sentence resignation letter to interim Prison Realty Chairman Thomas W. Beasley, Crants said he believed ``we are all better served by a change.″
Prison Realty said in a written statement that a national firm is helping it search for candidates to replace Crants.
``The company is grateful to Doc Crants for the many contributions that he made to both Corrections Corporation and Prison Realty. His leadership and vision helped create an industry,″ said Beasley, who co-founded CCA with Crants in 1983 and was named interim chairman in December.
On the Net:
Prison Realty Trust: http://www.prisonreit.com
Corrections Corporation of America: http://www.correctionscorp.com