The head of struggling clothing maker Pacific Brands has quit amid a boardroom battle about how to revive the company’s fortunes.
Pacific Brands, which makes Bonds and Sheridan sheets, said a search had begun to find a successor to John Pollaers.
“John’s decision to leave now has been driven by divergence between his views and those of the board regarding the best path forward for the company and its businesses,” chairman Peter Bush said in a statement on Monday.
“This divergence has become clearer as the strategic review being conducted by Macquarie Capital Limited has progressed.”
News of Pollaers’ resignation comes just weeks after Pacific Brands slashed its full year earnings guidance and hired Macquarie Group to carry out a strategic review.
Bush thanked Pollaers for his work in simplifying the company’s business model and improving the performance of its key businesses.
Pollaers said he was proud to have led the company and was grateful for the work his team had done in trying to improve Pacific Brands.
He had led the company for just under three years, having replaced Sue Morphet who quit in September 2012.
The group, whose brands include Berlei and Hard Yakka, cut its underlying earnings guidance by about 14 per cent to between $90 million and $93 million in June.
It blamed the warmer than expected autumn and winter weather and weak consumer confidence for eating into its sales.
It expects its underlying earnings for 2013/14 to be between $90 million and $93 million, down from its previous forecast of about $105 million.
Sales are expected to have grown by about three per cent in the financial year.
Shares in Pacific Brands were flat at 54 cents at 1426 AEST.
AAP