John McGrath, the founder of embattled real estate group McGrath, has appointed Kerry Stoke's former chief financial officer, Peter Lewis, as the new chairman.
Mr Lewis was a long time staffer at the Seven Network and left in 2013. He then joined Southern Cross Media, but left the radio and metropolitan radio broadcaster in July after just one month as chief financial officer, in what was described at the time as a shock move.
Up Next
A snapback in sentiment, but can it last?
- Video duration
- 03:55
More BusinessDay Videos
McGrath posts $25m loss
Real estate agency McGrath has entered a trading halt after reporting a $25.5 million loss in the six months ending December 31.
In an effort to move on after several disastrous months in the spotlight, the group will head into the week with a flurry of new appointments and a ''renewed'' vigour to get the business back on track.
Mr McGrath is to remain as an executive director and is in the throes of signing a new chief executive, who is expected to join this week and is a ''property person of long experience''.
Privatising the company ''is off the agenda'', spokesman Tim Allerton said. Mr Allerton has been called in as a temporary consultant by Mr McGrath.
The current chairman, Cass O'Connor, will remain in her position until the close of business on Monday.
The company told the ASX in January that when the chairman and three directors announced they would leave following a structural review of the business, Mr McGrath would become the interim executive chairman, but this is now not the case.
The new board, CEO and chairman spent Sunday with the company, sources said.
Mr McGrath declined to take calls on Sunday.
There will be only three directors in the new-look ''lean and mean'' board with backgrounds in the financial and legal industries.
Mr McGrath, who has never been comfortable in the public role, would ''focus on restoring investor and the market's confidence and play to his strengths'', Mr Allerton said.
He plans to recruit new agents and build confidence across the business, particularly with franchise agents and the property management operations.
Mr McGrath is also getting advice from a range of ''longstanding friends'', including Bruce McWilliam, a director of the Seven Network, and former rugby player Paul Cheika, whose brother Michael coaches the Wallabies.
Mr Allerton said on Sunday Mr McGrath was focused on securing a ''lean, mean board that will provide greater financial discipline''.
He said the issue of Mr McGrath's gambling habits ''is very separate to the business and would remain that way''.
Mr McGrath founded the business in 1988 and McGrath Estate Agents currently has 95 offices located throughout the east coast of Australia.
Fairfax Media reported earlier this month that Mr McGrath had a $16 million debt to bookmaker William Hill. In a statement to staff, Mr McGrath branded the report as "rubbish" .
In a statement to the ASX late last Thursday night, after the group requested a trading halt, Mr McGrath confirmed he did have a credit account with a bookmaker.
"Like many Australians, I enjoy a punt. I have a credit account with a bookmaker for this purpose," he said.
McGrath listed on the ASX in December 2015 at $2.10 and closed last week at 41¢.
Bagikan Berita Ini
0 Response to "John McGrath appoints Peter Lewis as new chairman of lean, mean board"
Post a Comment