KEY POINTS:
Hallenstein Glasson managing director Cliff Kinraid has resigned unexpectedly after five years in the job, to pursue "private business interests".
His sudden departure, effective from tomorrow, surprised the market yesterday and Hallenstein Glasson shares fell 6c, or about 1 per cent to $5.04.
No one from the company was available for comment and Kinraid did not return calls.
In a statement to the NZX, chairman Warren Bell said the search for a new chief executive was already under way.
"In the interim, the board was confident that with the experience and background offered by the non-executive directors, together with a proven senior executive team, that the company would continue to perform and execute strategy without interruption," the statement said.
The board acknowledged the significant contribution Kinraid had made to the development and growth of the company, both in New Zealand and in Australia.
Industry analysts said yesterday they were surprised by the announcement and had no idea what was behind it.
Kinraid is widely credited with reviving the fortunes of the Hallensteins and Glassons retail clothing chains since he was appointed managing director in 2002.
The company's share price doubled during that period and last year the company delivered a record profit of $21.7 million for the year to July 31.
However, this year's first-half result has disappointed some investors, coming in nearly 10 per cent down on a year earlier. Cooler than expected summer weather was blamed for the drop.
The company has been attempting to expand into the Australian market for several years.
In 2003, it closed its Hallensteins menswear stores across the Tasman to concentrate on the Glassons brand.
The women's fashion chain was more successful in Australia, generating profits of A$379,000 for the group in 2005.
But profitability across the Tasman has slumped with Australia generating profits of just A$56,000 in the last full-year result.
The group now has 24 Glassons stores in Australia and a total of about 85 Hallensteins and Glassons stores in New Zealand.
In 2006 Kinraid told the Business Herald he saw the potential for up to 100 Glassons stores across the Tasman.
