Ray Itaoui is set to helm Best & Less indefinitely as THE ICONIC's Erica Berchtold backs out of the role which she was expected to start in September.
Best & Less has today announced that incoming CEO Erica Berchtold, formerly CEO of THE ICONIC, will no longer be joining the company in September as announced earlier this year.
Over the course of the year Best & Less has experienced a series of leadership shakeups. Chief Executive Officer Rodney Orrock departed the business in February due to health issues, replaced temporarily by Executive Chair Jason Murray in April. Murray subsequently left the business last month following billionaire retail veteran Brett Blundy and (now online) music retailer Sanity owner Ray Itaoui’s $1.89-per-share, cash offer for Best & Less in May. Ray Itaoui assumed responsibilities of CEO, appointed by the board as a director of the company and Executive Chair.
In an announcement made today, the company confirmed that the Company and Erica Berchtold have agreed not to proceed with her appointment as Group Chief Executive Officer. Instead, Ray Itaoui will assume the responsibilities of CEO on a full-time basis.
“I am excited to lead BLG and committed to taking the decisive action necessary to position the Company for the current challenging trading conditions,” said Ray Itaoui. “I believe strongly in BLG’s potential to extend our leadership position in the value segment, leveraging our unique offer, privileged relationship with our customers, and the capability of BBRC.”
The news comes just days after Best & Less announced their preliminary Q4 results, with the company experiencing a huge sales slump of more than 13 percent. In May, Best & Less lowered its expected NPAT from $18-$20 million as predicted at the release of its first half results, down to just $10-$12 million. The company has further revised that in this week’s update to between $3.6 million and $4.2 million, which excludes a potential after tax impairment charge on Right of Use Assets of between $1.5 million and $3.0 million.
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