Question marks surround the future marketing and sales intentions of a swag of Pacific Brands' businesses after the sudden resignation of CEO John Pollaers yesterday.
The parent company of popular Australian brands including Bonds, King Gee, Berlei, Hard Yakka and Clarks, among others, is now seeking its third CEO in as many years after the shock resignation.
Pollaers, former head of Foster's Group before the company was taken over by SAB Miller, was almost two years into the role.
The former beer baron had replaced former CEO Sue Morphet who had undertaken a major restructure of the business including controversially taking manufacturing offshore in what was seen as a blow to the public image of its iconic Australian brands. The move resulted in 60 Minutes labelling her “ the most hated women in Australia”.
Executive chairman Peter Bush has stepped into the vacated role on a caretaker basis as the hunt begins for a permanent replacement for Pollaers.
A statement released by Pac Brands to the market yesterday cited a divergence of opinion on the future direction of the company as the cause of the split.
Pac Brands is currently undergoing a strategic review by Macquarie Capital with an update on possible recommendations expected in August.
Pollaers has pursued growth through opening and rebranding a host of retail outlets for Bonds, Sheridan and its Footwear clearance network.
The company's first half 2014 results report revealed spending on marketing for Bonds, Sheridan, Berlei and Hard Yakka had been lifted by more than $4 million.
While the current strategic review is not believed to encompass marketing across the brands, the loss of Pollaers after such a short time and the arrival of a new CEO could bring marketing across all the brands under the microscope.
In June the company issued a trading update warning that market conditions such as falling consumer sentiment and a warmer than expected autumn would see estimated earnings before interest and tax revised down to $90-$93 million from $105 million.
Pacific Brands employs a large roster of agencies across its brands including Clemenger BBDO and digital agency Analogfolk.
The company appointed OMD to its media business, estimated to be worth $16 million according to Nieslen figures, in March after incumbent Mediacom declined to repitch.
Shares in Pacific Brands were up almost 1% today in the wake of the announcement trading at 55.5 cents.
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at simoncanning@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.