Four more shown the door at Feltex

Tim Saunders says he is confident the new appointments will lift the Feltex's performance. Picture / Kenny Rodger

More heads have rolled at Feltex as the carpet-maker seeks new blood to fix its woes across the Tasman.

Four Feltex executives will follow chief executive Sam Magill out the door in the shake-up that has come after the company's profit downgrade last month.

They include chief operating officer John Kokic, general manager residential sales Rod Lyons, general manager customer services and distribution John Shackleton, and Australasian sales manager wool, Terry Baker.

Kokic, the longest serving among them, will retire in October after 25 years with the company and two years in charge of its manufacturing operations.

Shackleton will also retire in October, with Lyons to follow in December and Baker to leave this month.

Their departure will cost the company $1.2 million. Magill had previously announced he would step down at the end of the year, as part of a wide-ranging review of the company's operations. His payout is yet to be determined.

New heads of strategic planning, supply and residential sales have been named from within Feltex in an effort to turn the company around.

Changes include creation of a residential sales manager exclusively for Australia - the source of 75 per cent of its revenue and most of its recent troubles.

Previously, residential sales on both sides of the Tasman were managed by one person.

Feltex chairman Tim Saunders said he was confident the new appointments would "lift the performance of the company", which last month was clobbered by shareholders for failing to live up to profit forecasts of its prospectus when it listed on the local stock exchange a year ago.

The company has downgraded its profit forecast twice since then, and its earnings for the year to June 30 are now likely to be half of the $23.9 million prospectus projection.

Feltex blames its woes primarily on a sudden downturn in the Australian residential carpet market and on the strength of the dollar against its Australian and US counterparts.

But analysts have criticised management for their apparent failure to react to what many claim was a widely anticipated market slowdown.

Saunders said more changes could be made once a new chief executive was appointed.

An international search for Magill's successor is under way and the company expects to replace him by Christmas.

This week, Saunders is due to meet the chairman of rival carpet-maker Godfrey Hirst, which is seeking merger talks with Feltex.

The Australian carpet manufacturer made a play for Feltex last week, gaining nearly 6 per cent of the company for 58c a share and is now the company's largest shareholder.

Shares in Feltex closed steady yesterday at 60c, against an all-time low of 39c struck two weeks ago.

On the carpet Moving on John Kokic, chief operating officer; Rod Lyons, general manager residential sales; John Shackleton, general manager customer services and distribution; Terry Baker, Australasian sales manager wool.

Moving up Julie Simon, general manager strategic planning; Peter de Fontenay, general manager supply chain; Brendon Fall, national sales manager residential (Australia), responsible for synthetic and wool product; Steve McCann, national sales manager residential (New Zealand), responsible for synthetic and wool product.