The Redbubble Ltd (ASX: RBL) share price is trading lower in afternoon trade after announcing the surprise exit of its chief executive officer.
At the time of writing the ecommerce company's shares are down 1% to $1.22. They were down as much as 5% at one stage this morning.
What did Redbubble announce?
This morning Redbubble announced that chief executive officer Barry Newstead would be departing the company following the termination of his contract.
He will be replaced on an interim basis by Martin Hosking. Mr Hosking is Redbubble's former CEO, founder, and its largest shareholder.
Redbubble's Chair, Richard Cawsey, explained that the board felt a change of leadership was necessary following a strategic review of its operations.
Mr Cawsey said: "Redbubble has undertaken a review of strategy and its operations. Following these extensive deliberations, the Non-Executive Directors have decided that a change in leadership is necessary."
"We wish to thank Barry for his contribution. Barry has been an important part of the business since 2013, having previously served as COO, and then as CEO for the past 18 months. We wish him every success in his future endeavours," he added.
Business update.
This leadership transition comes ahead of the release of the company's half year results on February 26. The company advised that these will show that its financial and operating metrics are in line with expectations.
It will report growth in operating revenues of 25% over the prior corresponding period in the first half. It will also show positive cash flow in FY 2020 and an encouraging calendar year to date business performance.
Mr Cawsey appears confident in the company's prospects.
He concluded: "We are a market leader in our industry and have a unique business that is difficult to replicate, with strong fundamentals and a demonstrated growth strategy. The company's focus must be on core business and investing in the opportunities before the company."
"In the coming periods, that investment will focus on continuing the current growth initiatives, including accelerating the new product launch cycle and realising the opportunities provided by the quickly growing Fan Art partnerships."
A global search for a new long term chief executive officer will commence immediately.
