As the founder and owner of ComputerLand, William Millard, 53, built a billion-dollar business on an old-fashioned notion: it is better to be feared than loved. Since the firm’s start in 1976, Millard has ruled his 1,100 employees and more than 800 franchisees with an autocrat’s hand, making unilateral decisions and railing against anyone who challenged his judgment. Until recently, that style worked wonders. ComputerLand is the world’s largest chain of computer stores, with 820 outlets in 24 countries, including China. Profits are expected to reach $20 million this year. Millard, who is probably worth more than $500 million, should be a contented man. But the hard-driving entrepreneur is now in retreat. Last week, in a coup engineered by angry franchisees, Millard was forced to step down as ComputerLand’s chief executive officer. He and his daughter Barbara, 27 whom Millard installed as president last November, relinquished all day-to-day operating control of the Oakland-based company. Millard, whose family owns more than 95% of ComputerLand, is also scrambling to overturn a March verdict in which a California jury awarded 20% of the company’s shares to a group of investors that includes a former employee. The judgment ordered Millard to pay $115 million in punitive damages for refusing to deliver stock owed to the investors. It was one of the stiffest such awards in California history. Millard must post a $25 million bond by early November to appeal the ruling. Millard’s corporate empire has been sagging as well. ComputerLand faces fierce competition from rival retailers like Entre Computer Centers. With a computer-industry slump slowing sales, ComputerLand’s franchisees besieged Millard and his daughter to reduce their royalty fees, which range from 5% to 8%. Some franchisees claimed that ComputerLand has not honored its pledge to sell computers at cost to franchisees. When the franchisees threatened to sue to enforce the company’s contracts, the Millards felt they had no choice but to give up control of their firm. Former ComputerLand executives insist that Millard’s imperiousness created his company’s troubles and led to his downfall. Says Henry Fiur, a senior vice president from September 1983 to March 1984: “There wasn’t the possibility of democracy at ComputerLand. It was a one-man show.” Franchisees voice similar complaints. Says William Sadowski, who operates three + ComputerLand stores in suburban Chicago: “It’s because of Bill’s arrogance that all the problems came about.” The task of solving ComputerLand’s woes now falls to Ed Faber, 52, who served as president from 1976 until he retired in 1983. The former Marine Corps captain was salmon fishing in Redding, Calif., on Sept. 27 when Barbara Millard called to ask him to become the new chief executive. Within a day Faber had accepted, and last Monday he was in Chicago for a meeting of some 170 of the most disgruntled ComputerLand franchisees. Moving quickly to address their complaints, Faber said that he will announce by the end of this month a plan to cut royalty fees, at least temporarily. “Everybody’s very excited, although we realize miracles can’t be worked overnight,” says Ray Schlitzer, co-owner of three San Francisco stores.
