Alan Clarke resigns as Cavalier Corp chairman

Alan Clarke leaves Cavalier after three years as a director

Alan Clarke has stepped down as chairman of listed carpet maker Cavalier Corp from today and will also retire as a director following the company's annual meeting later this year.

Clarke joined the Cavalier board in November 2017 and became chairman on October 2018, replacing Sarah Haydon who lasted three years as chairwoman of the board.

His previous roles included chief executive of Abano Healthcare Group and Hellaby Holdings.

Cavalier director George Adams has been appointed new chairman effective immediately, Cavalier said in a statement.

To fill other vacancies, Cavalier said, John Rae will chair the risk and audit Committee and Dianne Williams will chair the remuneration committee.

Clarke was appointed to the board of Cavalier to assist with the company's turnaround strategy.

"With the successful development of the new strategy now complete, it is the right time to me to stand down," Clarke said.

Cavalier shares fell 2.23 per cent to 20.5c and are down 33 per cent since this time last year.

"I am delighted to hand over to George who has been a director and deputy chairman since 2018 and who brings with him a depth of experience in marketing and manufacturing organisations," Clark said in the company's NZX statement.

"I am confident that Cavalier and its team is well positioned for a stronger future."

Cavalier's new strategy involves moving away from low margin synthetic carpets and into higher value woollen flooring - reflected in growth in demand for its Bremworth Collection wool carpets.

This month Cavalier said it planned to sell and lease back its portfolio of properties to raise funds for the company's natural fibre strategy.

The carpet manufacturer has seen sales recover strongly following the Covid lockdown period and through June, although that was after claiming more than $2.8 million in wage subsidies and having its 380 staff accept a 20 per cent wage cut across the board.

In November the company forecast a first-half loss of between $1.1 million and $1.6m. It has, since August, been in danger of breaching its banking covenants.

Cavalier's net loss came to $10m in the previous first-half period due to a non-cash writedown in the carrying value of its 27.5 per cent stake in Cavalier Wool Holdings after its sale in last September.