Farmers chief big sale casualty

By IRENE CHAPPLE

New Zealand retail's million-dollar man, Farmers chief executive Nick Lowe, has quit and a dispute appears to be brewing over his departure.

One senior source said Lowe was seeking almost $1 million in a severance payout, but Farmers chairman Denham Shale said he unaware of any such claim.

Lowe refused to comment on the reasons for his resignation or when he expected to leave the company.

Late last year Farmers was sold to New Zealand-owned transtasman jewellery retail chain James Pascoe.

Lowe is understood to have wanted to own Farmers too, but his management buyout bid was unsuccessful.

Yesterday, when asked if he felt his job had been restructured out Lowe said: "No comment. Good question, but no comment."

Shale would only confirm Lowe had resigned but said "anything further is for him to say".

Shale said it was incorrect to say a case for constructive dismissal was pending but when asked if he had heard from Lowe's lawyer Shale said: "in these sorts of situations all sorts of things happen ... I think you should talk to [Lowe]".

Lowe said "the fact that I am leaving Farmers ... my reasons for leaving are my reasons and I don't wish to discuss them in a public forum. That is the stance I am going to take."

Lowe was made chief executive of Farmers in 2000 and said the highlight of his time had been rebranding the business and bringing in more fashionable merchandise. The lowlight, he said, was leaving.

A staff statement obtained by the Business Herald said Lowe's departure date was not finalised and "Mr Lowe will be working with the group managing director, David Norman and other senior managers in the transition leading up to his departure".

The statement said "the board expresses its regret that Nick is to leave Farmers, but acknowledges that this was always a possibility following the sale process."

Lowe, who came to New Zealand five years ago after being headhunted by Pacific Retail Group, brought his wife and three children with him and said the family wanted to stay in New Zealand.

However, he said he had no plans for the future.

Lowe was dubbed the million dollar man after receiving a severance payment from Pacific Retail Group of $975,000.

That was awarded after the company refused to continue Lowe's salary package, which was worth $1.1 million and put him among the country's highest paid executives at the time.

Lowe, who was with British retail giant Dixons for 12 years before he came to New Zealand, left Pacific Retail Group a few months after majority shareholder Murray International was bought out by Eric Watson.

Lowe then joined Farmers and has resigned four months after the company was sold to James Pascoe in partnership with Fisher & Paykel Appliances.

Farmers had produced disappointing sales for its former parent, Australian supermarket operator Foodland Associated, and James Pascoe immediately pledged tens of millions of dollars toward rejuvenating the brand.

Nick Lowe's career

MAY 1998 - Pacific Retail Group, owner of Noel Leeming and Bond & Bond chains, recruits Lowe as managing director from British consumer electronics chain Dixons. Lowe's salary subsidised by Pacific Retail's 58 per cent shareholder Murray International.

MARCH 1999 - Murray International sells its stake to Eric Watson's Cullen Investments.

JUNE 1999 - Lowe leaves Pacific Retail after disagreement about pay. He had a salary package of $1.1 million and negotiated a severance package of $975,000, partly paid by Murray International.

OCTOBER 2000 - Farmers Deka, owned by Australia-based Foodland Associated, hires Lowe as chief executive.

MARCH 2003 - Foodland puts Farmers up for sale, Lowe tipped for possible management buyout.

OCTOBER 2003 - Jewellery chain James Pascoe buys Farmers.

FEBRUARY 2004 - Lowe quits Farmers.