Wilson Neill's media chief decides to go

By SIMON HENDERY

Embattled Wilson Neill Corporation suffered another setback yesterday with the resignation of the head of its publishing subsidiary, IT Media.

IT Media founder Tim Connell, who took a major stake in Wilson Neill in 2000, said a "divergence of interests and management philosophies" were behind his decision to quit as the company's managing director.

"I have been unhappy with the direction and management of Wilson Neill for some time and ongoing cashflow problems have made my position untenable," he said.

Wilson Neill last week reported a $24 million loss for the 15 months to June 30 last year.

The company, which faces several claims from creditors, has had several high-profile business failures.

It has been criticised for its failure to meet reporting requirements and its enthusiasm for issuing new shares.

In a deal approved by shareholders last March, Mr Connell sold IT Media to Wilson Neill in return for a package which included $2.5 million cash, a 30 per cent stake in Wilson Neill and the job of group managing director.

He promised to solve the company's corporate governance problems but quit the group managing director's job after only eight weeks to focus on IT Media.

Mr Connell's 250 million Wilson Neill shares were worth about 6c each when the deal was announced. Yesterday the company's shares closed on the unlisted market at 0.3c.

IT Media, which closed the unprofitable Business Times this month, continues to publish NZ Rugby World and NZ Fishing World, which will be retained by Wilson Neill.

Cobb & Co franchisees, another Wilson Neill subsidiary, said this week that they might try to buy the restaurant chain from the company. It has been claimed money from a Cobb & Co franchisees advertising fund has been used to pay debtors.

Mr Connell plans to focus on niche magazine publishing.