New director faces Hi-Tec challenge
NIGEL COPE
Hi-Tec Sports, the troubled sports-shoe company whose latest finance director lasted just eight hours, appointed a replacement yesterday as it announced a pounds 12.5m loss for the 15 months to April.
Paul Harrison, currently Hi-Tec's financial controller, will take up the director post in October. He will replace John Fallon who was sworn in on the morning of 2 June but quit the same afternoon after a disagreement over the role of company founder, chairman and majority shareholder, Frank van Wezel. Mr Fallon and two non-executive directors had suggested that the squash-playing, soccer-loving chairman should step down to become part time. Mr van Wezel disagreed and the three directors immediately resigned.
"I have no doubts that I will outlast my predecessor," Mr Harrison said. He added that he knew the company well and enjoyed a good relationship with Mr van Wezel. The company is still seeking replacement non-executive directors.
Hi-Tec sports has been struggling against powerful competitors such as Nike and Reebok. The pounds 12.5 losses reported yesterday, which include a pounds 10.7m loss on the July disposal of Confex, a leisurewear business, compared with a pounds 1.1m profit for the previous 12 months. Sales rose from pounds 107m to pounds 128m. The company said that trading since April had been profitable and cash-generative. However, it said the retailing climate in both Europe and the US remained lacklustre, with problems exacerbated by intense competition.
Mr van Wezel said: "Any improvement in consumer spending will have a positive and immediate impact on business and Hi-Tec will be able to look forward to an improvement in profits."
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies