Three current directors were being replaced and two retained. Photo: 123rf
- Shareholder group succeeds in forcing out most Bremworth directors
- Peaceful takeover achieved, special meeting called off
- New directors looking to spend $42m insurance payout where needed most
Unhappy shareholders in carpet maker Bremworth have succeeded in forcing out most of the company's directors.
The current chair of meat company Silver Fern Farms, Rob Hewett, headed the rebel group which claimed the outgoing directors had failed to grow the company or deliver value for shareholders.
The group has negotiated a transfer of power with three current directors being replaced by Hewett allies, and two of the current board including chair George Adams, being retained.
Hewett is set to become the new chair, and said the company was crucial crossroads.
"We will need to call on the experience of all directors as we take Bremworth into its new era, which demands a fresh approach to drive growth and earnings."
He said a key priority was to ensure the final insurance payout of $42.2 million for Cyclone Gabrielle damage was used to best effect, starting with a period of consolidation and business transformation.
They planned to look again at a Bremworth strategic review, which the outgoing board started to see if there were possible buyers or investors interested in the company.
The company has struggled from declining market share as it decided to dump synthetic carpets and sell only wool products, and then the cyclone in 2023.
"This transition is about securing the company's future while preserving its heritage. There will be a focus on working with Bremworth's talented staff to maintain operational stability and business continuity as we set our sights on the opportunities ahead," Hewett said.
A request for a special meeting to replace the current board has been withdrawn and the new directors will be put up for shareholder approval at the annual meeting.
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