Media coverage has disappointed Pumpkin Patch CEO Maurice Prendergast. Photo / Natalie Slade
Pumpkin Patch independent director Jane Freeman has assumed the role of acting chairwoman for the listed retailer until a permanent appointment is made, shareholders were told at the annual meeting yesterday.
Former chairman Greg Muir, who announced on Friday he would not stand for re-election to the board, was not
present. A prepared statement from him was read to shareholders, in which he said his decision to stand down had not been taken lightly.
"For the last 12 months my continued involvement [in Pumpkin Patch] has become the focus of negative attention by a few market commentators ... I believe it is in no one's interest that this continues. Not only does it damage the role of chair - it also damages the company itself," Muir's statement said.
Prominent fund managers and Pumpkin Patch shareholders voiced concern in the Business Herald last week that Muir's past involvement with Hanover Finance made him unsuitable for his role on the retailer's board.
Muir's announcement not to seek re-election came only hours after the Securities Commission released a statement indicating it was close to reaching a decision on whether to lay criminal charges against the former directors of Hanover Finance.
Muir was the finance firm's chairman from 2005 until 2008, when it failed, owing $554 million to investors.
Addressing shareholders, Pumpkin Patch chief executive Maurice Prendergast said he was disappointed with last week's "media commentary" on the company's board composition. Prendergast said after yesterday's meeting that Muir's skills at the board level would be missed at Pumpkin Patch.
"He's a great visionary for business and we all feel for him."
Prendergast said it was too early to say who the company's new chairperson might be.
The company has indicated it is looking for a new director.
Pumpkin Patch said it was facing difficult trading conditions across its markets, which include New Zealand, Australia, Britain and the United States.
The company will open three new stores in New Zealand during its current financial year, as well as 14 in Australia and five in Ireland and the UK.
Pumpkin Patch's share price closed down 2c at $1.80 yesterday.
