Wellington, New Zealand, October 5, 2005--Troubled carpet maker Feltex said it could not reach agreement on the terms of the departure of former chief executive Sam Magill and it had terminated his contract.
On August 24, in the wake of a serious downturn in sales and profit, Feltex announced Mr Magill had stepped down and Peter Thomas had assumed the role of executive director until a new chief executive was appointed.
"Unfortunately the board has been unable to reach a final agreement with Mr Magill on terms that it believes are in the best interests of Feltex's shareholders and consistent with his employment contract," Feltex said in a statement.
"The board has therefore terminated Mr Magill's employment with immediate effect." It said the board's view was that provision made in the 2005 audited accounts for the severance payment for Mr Magill's departure was adequate.
The board has also told Mr Magill to resign as a company director.
Mr Thomas will continue to act as executive director until the new CEO is appointed.
