Oroton major stakeholder Will Vicars steps down from Director role

By

Benjamin Fitzgerald

Published
May 24, 2017

Upmarket accessories brand Oroton announced on Wednesday the resignation of Will Vicars as Director, the latest negative news to come out of the struggling Australian retailer.

Vicars said the decision was a result of other commitments, however he will remain a major shareholder in the Oroton Group.

“With the increasing level of my other commitments, I have made the decision to reduce the number of directorships I hold, and accordingly I have decided to resign as director of Oroton Group," said Vicars, in a press release.

"I remain a major shareholder in Oroton Group and am supportive of the work being done by the Board and management.”

Oroton Group said it would endeavour to find a replacement for Vicars as soon as possible.

The shock exit follows last week's full-year earnings downgrade from Oroton, which saw its shares plummet to an 18-year low. In a filing, Oroton said sales fell 11 per cent in first nine months of its financial year including April, with the decline extending from a 10 per cent slump in the first six months. Consequently, Oroton predicted underlying earnings of just A$2 million to A$3 million for the full financial year, down more than 75 per cent from $12.9 million in the prior year. 

The downgrade comes on the back of a tragic year for the upmarket Australian accessories brand. In the six months ending January, Oroton Group's net profit slumped 52% to $1.8 million following a 10 per cent drop in group sales to $67.1 million.

As a result, Oroton Group's chief executive Mark Newman quit the following week in early April, and was replaced by director Ross Lane, who now serves as interim CEO.

Lane is the company's biggest shareholder with a 21 per cent stake. Combined with Vicars, the pair own 38.5 per cent of the company, which has a market capitalisation of just $68 million.