Billabong dumps long-time boss

MADELEINE HEFFERNAN
Last updated 17:22 09/05/2012

Relevant offers

World

Snow geese deaths from mine pit number in the thousands Grandma's favourite stocking stuffer is 2016's most surprising popular Christmas gift Worried about your debts? Spare a thought for Gina Rinehart Yes women want to be chief executives, even when they have children Lego replaces long-time CEO with first foreign boss in organisational shake-up PewDiePie top the list of highest paid YouTube stars of 2016 Amazon opens line-free grocery store in the US as it looks to challenge supermarkets 'Sex is becoming a financial decision': Soaring Viagra prices in the US deflate older couples BMW forced to repay A$72m to car buyers it misled Trump warns of 'retribution' for US companies that offshore jobs

Surfwear business Billabong has dumped CEO Derek O'Neill and replaced him with a former Target boss following a tumultuous six months at the company.

Billabong has appointed former Target head Launa Inman as its new managing director and CEO, with O'Neill to "depart the company today". Its shares lost as much as four cents, or 1.7 per cent, to A$2.36 in early trade today.

In a statement this morning, Billabong said the board had decided that the company "required new leadership and skill sets for the next stage of its development".

"Derek O'Neill has been with Billabong for more than 20 years and we thank him for his service and wish him best for the future," chairman Ted Kunkel said.

Inman, a Commonwealth Bank board member, has spent the past two months consulting with Billabong. She formerly served as managing director of Target Australia and head of Officeworks.

The company's shares plunged from A$3.64 to A$1.77 just before Christmas last year on a poorly received profit downgrade blamed on unfavourable weather in the northern hemisphere and weak consumer sentiment.

In February this year, its shares regained some of the lost ground, rising from A$1.79 to A$2.62 when the company received A$3.30 a share buyout offer from TPG. The offer was rejected with Billabong arguing it undervalued the company.

The company instead unveiled a turnaround plan that includes job cuts, store closures, the sale of its Nixon brand and cost savings.

Ad Feedback

- Sydney Morning Herald

Special offers

Featured Promotions

Sponsored Content