Reject Shop Ltd (ASX: TRS) managing director Chris Bryce has resigned after eleven years at the discount variety retailer.
Investors seem to be pleased with the news, pushing the Reject Shop's shares up 2.4% in early morning trade.
The news comes after the retailer reported weak first half sales and earnings. Reject Shop's shares slumped by 40%, after the company reported a 15.9% fall in net profit to $16.9 million, despite revenues rising 17.7%.
The Reject Shop embarked on a massive expansion program 18 months or so ago, taking advantage of the collapse of rival Retail Adventures. But it seems management have struggled with the rollout, with inventory management, low selling categories and poor store layouts being blamed for the disappointing results.
Given those results, it's perhaps not surprising that Mr Bryce is leaving the Reject Shop.
Chairman Bill Stevens says the company has commenced a national and international search for Mr Bryce's replacement. That comment suggests The Reject Shop has neglected its succession planning, given it seems there's no-one available internally to fill the role.
Mr Stevens says the company is in a strong financial position and is on target to meet its full year goal of net profit between $17-$18 million.
