Struggling paper giant PaperlinX has announced its CEO Toby Marchant is to leave the company this month, although as yet there are no details as to whether the 15 year company veteran jumped or was pushed.
The company is now looking for a replacement, with both internal and external candidates being considered. In the meantime executive vice president Dave Allen is interim CEO.
Marchant has presided over a disastrous share price collapse during his tenure, with more than 90 per cent being wiped of the company’s value since his appointment, with shares down from 43.5c to the current 4c - shares slid 13 per cent on news of his departure.
He says, "We have reached a major turning point in the transformation of PaperlinX, and the board and I have agreed that it is an opportune moment for me to step down as chief executive. I am doing so knowing that we have taken major strides towards dealing with our significant legacy issues, in the midst of exceptionally hostile conditions, and that we are now on the right path."
PapelrinX is currently pulling out all the stops to reduce its losses, which last month it predicted would reach $171m for this year. It is selling businesses across a slew of countries in Europe, South Africa and North America for which it hopes to achieve $122m in sales, its directors have taken a 15 per cent pay cut, senior managers have been asked to take a 7.5 per cent haircut, and it has engaged on a significant round of across the board cost cutting.
The company's losses in recent years have reached eye watering proportions, prior to the $171m it expects to lose this year it reported a loss of $108m in the 2011 year, a loss of $225m in 2010, and a loss of $798m in 2009, giving a combined figure for the past four years of a whopping $1.3bn.
PaperlinX has just beaten off a bid from former Stream Solutions CEO Andrew Price to oust Harry Boon as chairman.
Andrew Tribute
