SYDNEY: Party plan business UnderCoverWear has announced the loss of its CEO and plans to cease local production.
The “sudden departure” of CEO Simon Pervan comes just over eight months after he was appointed to the role on April 1, 2010.
UnderCoverWear company secretary Nick Geddes revealed only that Pervan had left to return to New Zealand and will be replaced by the company's principal shareholder, John Everett.
Prior to his role as CEO, Pervan was UnderCoverWear's national sales and marketing manager.
Geddes also disclosed UnderCoverWear plans to cease onshore production effective from December 31, 2010. The company estimates the move offshore will involve a one-off cost of approximately $150,000.
The changes come in the wake of UnderCoverWear's efforts to overhaul its operations following a number of years of financial losses. In the company's annual report to shareholders in September, UnderCoverWear chairman Stuart Richardson said the company's restructuring of its management team – including the appointment of Pervan – was among the changes anticipated to deliver improved financial results in coming quarters.
Geddes said the company's financial results for the current half are expected to break even or show a small loss amounting to “less than $250,000”.
“The initiatives as outlined above should result in a return to profitability in the first half of 2011. However trading conditions remain difficult,” Geddes said.