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Listed clothing retailer Hallenstein Glasson - already struggling with falling sales and a sluggish Aussie presence - has been dealt a further blow with the departure of its chief executive of six months.
The company announced yesterday that Melbourne-based Shayne Quanchi, who assumed the role in March, was stepping down for personal reasons.
Chairman Warren Bell said Quanchi's decision was a "difficult" one.
"There has been an economic downturn on both sides of the Tasman which has made it necessary for us to focus on the New Zealand business which is, and always has been, the engine room of our company.
"This change in direction has meant that Ms Quanchi has been required to be in New Zealand almost fulltime and we understand that this has placed considerable stress on her family life. She has chosen to step down from the role rather than relocate her family from Melbourne and we naturally accept that decision."
Perth-born Quanchi came with impressive credentials garnered from 20 years' in fashion retail, including a stint as business manager at Australia's largest department store chain Myer, where she looked after after a fashion portfolio worth A$300 million ($368 million).
She was announced as chief executive seven months after the sudden resignation of managing director Cliff Kinraid on May 31 last year.
The decision to base the top job in Melbourne had signalled where the often-reticent company saw its main growth opportunities. Quanchi backed this up in an interview with the Business Herald in March.
She said then that the 25 Glassons stores in Australia had struggled with cut-through in a crowded market - and part of that problem was its Christchurch head office location.
"There's not a lot of inspiration [there], you could say. I think we need to be around our direct competitors all the time. There's far more inspiration in Australia," she said.
The NZX-50 company has also suffered from a fall in sales as consumers struggled with increased living costs, forcing the company to advise in July that full year earnings could fall around 30 per cent to approximately $15 million. Its full year result is scheduled for release on September 24.
Hallenstein Glasson shares, like other retailers, have taken a hammering. The firm closed yesterday at $2.96, down 4c, well off its 52-week high of $4.61, and close to its low of $2.42.
