The troubled online retailer SurfStitch has axed four from its board of directors.
Gone are executive directors Lex Pedersen, a co-founder of SurfStich, and Justin Stone, the founder of Surfdome, and non-executive directors Stephen Goddard, a retail veteran, and Jane Huxley, a former CEO at Fairfax Digital.
A short time ago, company’s shares were down 3% to $0.16, a long way from the $1 price at IPO in 2014.
“Lex and Justin will continue in their executive positions and stepping down from the board will free up more time to commit to those roles,” says chairman Sam Weiss.
Joining the board is Harry Hodge, the founder and long-time chairman of Quiksilver Europe. He has more than 30 years of experience in clothing, board sports and fashion sectors in CEO, chairman and director roles.
“As CEO and executive chairman of Quiksilver Europe, he played a pivotal role in growing the brand in Europe from a $1 million a year business in 1984 to a $500 million business in 2004,” says Weiss.
“He has led a number of mergers and acquisitions and IPO processes, and has implemented strong corporate governance and risk management systems. Harry’s experience will be invaluable to the board as it continues with the strategic review of SurfStitch.”
The board now consists of Weiss, Hodge and CEO Mike Sonand. The company is now looking for additional directors.
Hodge’s experience with mergers and acquisitions will be handy. Rumours about a takeover have emerged since founder and former CEO Justin Cameron resigned in March. The surf wear retailer was started by Cameron and Lex Pedersen in Sydney’s northern beaches eight years ago.
The company then said it understood Cameron was pursuing a potential acquisition in conjunction with private equity. There has been no news since.
SurfStitch has since confirmed it had received a “number” of unsolicited, non-binding and indicative expressions of interest.
The company in August announced a full year loss of $155.35 million. The company is forecasting single digit sales growth for 2017 while it restructures.
The company says the integration of companies acquired over the last year has been slower than anticipated and the benefits lower than expected.