Wellington, New Zealand, July 5--Carpet maker Feltex said today that four more senior managers would be cut and projected a restructure cost in excess of $1.2 million -- excluding the costs associated with the earlier termination of CEO Sam Magill according to the National Business Review.
It said the costs would be paid on the respective departure dates of the executives, but would be accounted for in the 30 June 2005 fiscal year.
It had previously announced the departure of CEO Sam Magill.
The outgoing exectutives are are John Kokic, Chief Operating Officer; Rod Lyons, General Manager Residential Sales; John Shackleton, General Manager Customer Services and Distribution; and Terry Baker, Australasian Sales Manager Wool.
They have been replaced, effective from 1 July, by:
Julie Simon as General Manager Strategic Planning;
Peter de Fontenay as General Manager Supply Chain;
Brendon Fall as National Sales Manager Residential (Australia), responsible for synthetic and wool product; and
Steve McCann as National Sales Manager Residential (New Zealand), responsible for synthetic and wool product.
Chairman Tim Saunders said the appointment of the two National Sales Managers for residential markets was particularly significant. "Previously this has been a single function. By focussing separately on the New Zealand and Australian markets and bringing together responsibilities for synthetic and wool products we are looking to achieve an intensified customer focus and ability to respond to market changes."
CEO Magill's departure will be effective in December.
Mr Kokic and Mr Shackleton will retire on 1 October 2005. Mr Lyons will follow on 1 December 2005 and Mr Baker will leave later in July.
Mr Saunders said the new structure is interim and could be further evolved by the new CEO, expected to be appointed before Christmas.
An international search for the new CEO is under way, Feltex said.
On 29 June, Australia-based carpet maker Godfrey Hirst Australia Pty Limited said that, following a market stand for 10 per cent of Feltex, it had acquired a shareholding of approximately 5.83 per cent in the company, which it described as a "strategic stake."
