Heads roll at troubled carpetmaker Feltex

Troubled carpetmaker Feltex is cleaning out its management closet in a bid to turn the company around.

Feltex today announced a string of changes that will see new heads of strategic planning, supply, and residential sales.

The new appointments, which came from within the company, include Julie Simon as general manager of strategic planning, Peter de Fontenay as general manager supply chain, Brendon Fall as national sales manager residential (Australia), and Steve McCann as national sales manager residential (New Zealand).

Chief executive Sam Magill had previously announced that he will be resigning at the end of the year and others on way out are John Kokic, chief operating officer, Rod Lyons, general manager residential sales, John Shackleton, general manager customer services and distribution, and Terry Baker, Australasian sales manager wool.

Feltex chairman Tim Saunders said he was confident the new appointments would "lift the performance of the company", which was last month clobbered by shareholders for failing to live up to expectations.

The company has twice issued large downgrades to its profit forecast for the fiscal year to June 30, and its earnings are likely to be half of the $23.9 million projection contained in its prospectus when it listed on the local stock exchange a year ago.

Feltex management blames its woes principally on a sudden downturn in the Australian residential carpet market. A series of factors outside the company's control, such as the strength of the New Zealand dollar against its Australian and US counterparts, have also been blamed.

But analysts and brokers have attacked Feltex management for their apparent failure to react to what many claim was a widely anticipated market slowdown.

Mr Saunders said today's appointees would play a key role in a strategic review of the company.

"Each of the new appointees has a proven track record in our business."

Leading the changes is the appointment of two national sales managers.

"Previously this has been a single function," Mr Saunders said.

"By focussing separately on the New Zealand and Australian markets and bringing together responsibilities for synthetic and wool products we are looking to achieve an intensified customer focus and ability to respond to market changes."

Mr Saunders said the company expected to have a new chief executive by Christmas, and an international search was currently underway.

Shares in Feltex, which is in merger talks with its Australian rival Godfrey Hirst after the company made a play for Feltex last week, last traded steady at 60c, against an all time low of 39c struck two weeks ago after Feltex revealed the extent of its financial woes.

- NZPA