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Highlights
- The company’s new CEO to join on 11 July 2022.
- The Reject Shop expects to inform FY22 results by late August 2022.
- The share price of the company reacted positively and surged by 14%.
On Thursday morning, The Reject Shop (ASX:TRS), famous for offering the best value on everyday items, shared that Phillip Bishop has been appointed as its new chief executive officer (CEO). Bishop will take up the role from 11 July 2022. The ASX-listed retail company has updated on its changes in capital management.
The shares of The Reject Shop were spotted trading 14% higher at the ASX to AU$3.25 per share at 10:28 AM AEST, with a market capitalisation of AU$109.23 million.
The organisation aims to help Aussies save money.
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Appointment of new CEO
The change in leadership is coming when the company implements a turnaround strategy. Phillip, who carries 30 years of retail experience, is known for developing and implementing strategies that deliver sustained growth.
He began his career as a local greeter at a Target store in Australia. Recently, he was director of merchandise and marketing at the household hardware company, Bunnings. He also served at Officeworks in various roles, including a chief operating officer.
The company appointed the new CEO after accepting the resignation of Andre Reich in April 2022. Due to the immediate reliving of Reich, Clinton Cahn (CFO at that time) was appointed as acting CEO.
The Reject Shop has successfully executed the initial stage of the turnaround strategy and has entered the growth stage. The company has experienced a senior leadership team and a growing national store network and is well-positioned with a lower cost base.
Image source: © Adonis1969 | Megapixl.com
Steven Fisher, The Reject Shop’s chairman, said that Phillip is the right person to leverage the company’s growth and turnaround plans.
Upon his appointment, Phillip reportedly said that the company has considerable growth opportunities, such as store network expansion and evolving product offerings.
Capital management update
The ASX announcement confirmed that The Reject Shop is examining an on-market share buy-back. If the board agrees to proceed with the same, the company will disclose the details by the next month or in August.
Financial Year 2022 update
In a statement, the company informed the market that its trading activities met the management’s expectations. Also, it is in tune with broker consensus estimates for the financial year 2022 (FY22).
The Reject Shop said it expects to share FY22 results in late August 2022, after the completion of the external audit.
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