UK auto repair company and bicyle retailer Halfords Group plc sacked its CEO David Wild after reporting that the unusually rain weather had caused a sharp downturn in its liesure sales. Wild has agreed to leave the board of Halfords, which has commenced a search for his successor.
The company reported on Wednesday that Cycling and other Leisure revenues were materially impacted by the unseasonal weather conditions with Cycling revenues down 9.6 percent.
The results prompted the company to lower its earnings guidance for the year.
“The consumer environment remains difficult and the unseasonal weather conditions this quarter had a direct impact on sales of cycles and outdoor leisure products,” said Dennis Millard, the non-executive chairman of the board who is now serving as interim executive chairman. “In this challenging economic environment the management team will be focused on maximising our trading performance and cash generation, prudent cost management and delivering the longer term strategy outlined to shareholders in May 2012.”
Millard will chair Halfords' executive committee pending the appointment of a new CEO, assisted by his Board colleagues Andrew Findlay, finance director, and Paul McClenaghan, commercial director, and the business will continue to be managed by the established leadership team.
“The Board and I would like to thank David for his efforts and strategic insight over the past four years,” said Millard. “Halfords is a strong business with a clear strategy and leading positions in a number of large and attractive retail and service markets. After careful deliberation, it is felt that now is the right time for a change of leadership in the Group to enable it to implement that strategy and maximise the opportunities that lie ahead.”
David Wild said: “I have enjoyed my time at Halfords and feel we have accomplished a great deal during my tenure as CEO. Now that we have developed the overall strategy that will guide the future of the business over the coming years I feel it is the appropriate time to step down and seek fresh challenges elsewhere.”
As a result of his stepping down from the Board, David Wild will not be proposed for re-election as a director at Halfords' Annual General Meeting on 31 July 2012.
