Pumpkin Patch eyes new blood

Greg Muir. Photo / Brett Phibbs

Finding a new independent director to join the Pumpkin Patch board will be one of the issues discussed with shareholders at the company's annual meeting in Auckland today.

The addition to the agenda follows Greg Muir's announcement on Friday that he would not stand for re-election as chairman of the listed children's clothing retailer.

Independent director Jane Freeman will carry out the role of acting chair for the purposes of the the meeting, in place of Muir.

Pumpkin Patch chief financial officer Matthew Washington said no announcement of a replacement chairman would be made at today's event.

It was too early to say how long it would be before the company announced a new board member.

"There is a remuneration and nomination committee, which operates as a subcommittee to the board, and it will be their role to search out that new director," he said.

Through that process it would be decided who would eventually chair the board.

Muir's announcement came just hours after the Securities Commission indicated it was close to reaching a decision on whether to lay criminal charges against the former directors of Hanover Finance.

Muir was the finance firm's chairman from 2005 until 2008, when it failed owing $554 million to its investors.

Prominent Pumpkin Patch shareholders had voiced concern in the Business Herald that Muir's involvement with Hanover rendered him unsuitable for his ongoing role on the retailer's board.

Shareholders Association director Des Hunt, one of those who opposed Muir's re-election, yesterday said the company now had a good opportunity "to bring some new blood on board".

The company needed to find a director with international marketing and retail experience, he said.

"They've got a very experienced management team but it's always good to have an independent director who understands some of the things they're dealing with."

Pumpkin Patch independent director David Jackson would be a good choice for promoting to the chairman's role, he said.

Hunt said the fact that Jackson - also a Nuplex director - faced Securities Commission proceedings over alleged continuous disclosure breaches at the listed manufacturing firm was not of concern.

"I'd be a little bit disappointed if [Nuplex and its directors] got punished too heavily there," he said.

Carmel Fisher, principal of Fisher Funds, a large Pumpkin Patch investor, said the firm's new chairman should be someone with retail experience and knowledge.

"It's difficult to be a good retailer in a tough climate so you need someone who can help in that regard," she said.

Pumpkin Patch's share price closed down 4c at $1.82 last night.