Greg Muir quits as Pumpkin Patch chair

Confidence is waning in Greg Muir's ability to perform as executive chariman of children's clothes company Pumpkin Patch. Photo / Brett Phibbs

Greg Muir, the embattled chairman of children's clothing retailer, has announced he is quitting the job, in a victory for shareholders who have been pushing for his removal over his former role on the board of failed finance company Hanover.

In an announcement to the NZX, the company said that "Greg Muir has today informed the Board of Directors that he has decided not to seek re-election at the Annual Shareholders Meeting on 23 November 2010."

"I am proud of Pumpkin Patch's achievements during my time as Executive Chairman and Chairman of the Board. Over this period the Company has produced significant total market returns with turnover and earnings more than doubling. I have enjoyed contributing to this iconic New Zealand company and am particularly proud of its continued growth and development."

Some influential Pumpkin Patch shareholders want chairman Greg Muir removed from the board because of his role with failed finance company Hanover - a company which has left thousands of investors out of pocket.

Paul Glass, principle of Devon Asset Management, which manages money on behalf of investors, said its decision not to support Muir was "ultimately a judgment call".

"We are very uncomfortable with the role he performed at Hanover," he said.

Milford Asset Management's Brian Gaynor said he was also very unhappy with Muir's decision to stand for re-election. His role at Hanover Finance was "a major reason for that".

Gaynor said Muir had also played a major role at The Warehouse when the company made its disastrous investment into Australia.

Shareholders Association director Des Hunt said Pumpkin Patch was a great company but it would be encouraging its members to vote Muir off the board.

"We have no confidence in Greg Muir after his performance at Hanover. The Hanover thing is not finished - it just sends the wrong signal to people around the world and investors who have been hurt by Hanover."

In his announcement today, Muir said: "Despite the stellar performance of the Company, it would appear that my leadership of the Pumpkin Patch Board is drawing attention away from the business itself. Rather than allowing this to continue I have decided it would be in the best interests of the Company for me not to seek re-election."

Pumpkin Patch chief executive Maurice Prendergast said in the announcement he "would like to thank Greg for the effort he has put in over the last 6 years especially for his work in developing the Wholesale Division and helping it become such an important part of Pumpkin Patch's long term future. He has been an outstanding executive and Chairman and we wish him well".

- HERALD ONLINE