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After serving in the CEO role at retailer The Reject Shop (ASX: TRS) for just over two years, Andre Reich has today announced his resignation from the top job to pursue other opportunities.
Reich, who joined TRS in January 2020, led the company’s turnaround while navigating the pandemic. With this ‘fix’ stage of the turnaround strategy complete, the CEO determined now was an appropriate time to leave.
TRS acknowledged Reich inherited a company in dire straits, noting that it “required significant turnaround”.
Reich replaced former CEO Ross Rusano, who stepped down after the company announced it was expecting a loss for FY19. The retailer eventually posted a net loss after tax of $16.9 million for that financial year, a few months before appointing Reich.
Despite the lingering challenges of COVID-19, Reich’s leadership has turned TRS’ fortunes around, with the chain of discount outlets most recently posting a $15.4 million net profit after tax for 1H22.
Following Reich’s appointment, and in the midst of the COVID-19 pandemic, TRS’ share price also made a triumphant return to levels not seen since April 2018 of close to $8 per share. That has since mellowed down to $5.10 per share - still a significant improvement on the $1.97 low seen just prior to Reich being named CEO.
“Under Andre’s leadership, The Reject Shop’s corporate culture has been reset, the business has returned to profitability with a lower cost base, the balance sheet is strong and the store network continues to expand. These achievements will underpin the growth of the company into the future,” TRS said.
TRS Chairman Steven Fisher thanked Reich for his contribution to the company’s turnaround over the past two years.
“Everyone at The Reject Shop wishes Andre well in his future endeavours and we thank Andre for the work he has done to position the Company for future growth,” Fisher said.
“We have commenced an external search to identify an experienced executive to lead the company through the next phases of the turnaround strategy.”
In the interim, TRS CFO Clinton Cahn has been named acting CEO of the company. TRS also announced Amy Eshuys’ appointment to the role of COO from 28 April 2022.
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