'Fixing Feltex' for investors becomes priority for chairman

Feltex Carpets chairman Tim Saunders will devote "as much time as it takes" to help the troubled company regain investors' confidence.

Saunders made the comments in a letter to Shareholders' Association chairman Bruce Sheppard, who raised concerns about Feltex last month.

"Clearly, the recent drop in market value of Feltex Carpets is a very unsatisfactory state of affairs for investors in that company and this is recognised by the board and management of the company," Saunders wrote.

"I intend devoting as much time as it takes to ensure the company's performance will engender renewed confidence in the company and I'm sure this is the case with my fellow directors as well."

Sheppard had suggested that Saunders should resign one or two of his other directorships to focus on "fixing Feltex".

Saunders, who said he expected his tenure with at least one other company to end soon, is also chairman of Solid Energy and a director of NZX, Contact Energy, Pyne Gould Corp, Calan Healthcare, Capital Properties and Marac Finance.

Feltex shares were sold at $1.70 in an initial public offering last June. On April 1 they crashed 46c to $1.04 after Feltex said full-year profit would be up to $9 million below projections. Then, on April 13, Feltex posted an $888,000 third-quarter loss. Yesterday, its shares closed up 1c to 71c.