Renaissance boss quits, shares drop sharply
More turbulance at NZX-listed IT distributor and education company. Shares fall 8.45%. Director Rick Ellis resigns.
There was more turbulance today at troubled IT services and education company Renaissance as chief executive Richard Webb's resignation was announced to the NZX. A replacement has yet to be named.
The company's shares [NZX:RNA], already trading close to a 52-week low, were down 8.45% in late trading.
Mr Webb, who is leaving to "focus on his technology incubation businesses," succeeded long-time head Paul Johnston, who left the company early last year.
One of his main intiatives has been rebranding the Magnum Mac chain as "Yoobee."
The company's board also informed shareholders today that it was willing to take offers for Renaissance's IT distribution subsidiary. A sale would leave the company with Natcoll and its Yoobee retail chain and "substantially reduced working capital requirements."
Renaissance which has struggled to diversify since losing its exclusive Apple agency, recently warned investors it was facing a "perfect storm," with revenue projected to fall from last year's $145 million to $119 million in the current financial year. Over the past year, the company has cut staff from 367 to 268 in a bid to cut costs and break-even.
Mr Webb arrived at Renaissance after a series of advertising and marketing roles in the US. He is best known for founding Red Sheriff, an internet traffic measuring company sold to Nielsen in 2004.
His departure follows that of Renaissance co-founder Warwick Grey, who returned to Microsoft last month.
Renaissance today also announced the resignation of long-time director Rick Ellis.
Earlier today, Mr Ellis revealed he is leaving his role as TVNZ chief executive in the new year for a role with Telstra.
Mr Ellis will be replaced on the board by Ron Halls. From June 2006 to June this year, Mr Halls was president and chief executive of Footlocker Intenational.
Ron
Halls
has
had
a
distinguished
career
in
retail
and
consumer
products
both
in
New
Zealand
and
overseas.
His
last
appointment
from
2006
until
June
this
year
was
as
President
and
CEO
of
Footlocker
Inc
International.
NBR staff
Fri, 18 Nov 2011
Fri, 18 Nov 2011
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Renaissance boss quits, shares drop sharply
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