The Reject Shop Ltd (ASX: TRS) share price is freefalling on Wednesday following the shock exit of the company's CEO.
At the time of writing, the discount retailer's shares are changing hands at $4.32, down 15.29%.
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Reject Shop CEO departs
Investors are selling off the Reject Shop shares after the unexpected announcement regarding its most senior leader.
In today's statement, the Reject Shop advised that CEO Andre Reich has tendered his resignation with immediate effect.
After serving two years at the helm, Mr Reich has decided to pursue other opportunities away from the company. This comes after the group completed the 'fix' phase of its turnaround strategy while navigating the uncertainty around COVID-19.
While the company searches for a permanent replacement, its chief financial officer (CFO), Clinton Cahn, has been appointed acting CEO.
Mr Cahn will continue to fulfil his CFO responsibilities while covering the new duties required within the CEO capacity.
Commenting on the news, Reject Shop chair Steven Fisher said:
Everyone at the Reject Shop wishes Andre well in his future endeavours and we thank Andre for the work he has done to position the company for future growth.
We have commenced an external search to identify an experienced executive to lead the company through the next phases of the turnaround strategy.
The Reject Shop also advised today it has strengthened its leadership team with the appointment of experienced retail professional Amy Eshuys as chief operating officer.
The company said Ms Eshuys brought a wealth of knowledge to the role, with extensive international merchandise experience and a strong understanding of discount variety retail.
Previously, she served as vice president as well as general merchandise manager for buying, merchandising & sourcing at CTS (formerly known as Christmas Tree Shops) in the United States.
About the Reject Shop share price
After hitting a 52-week high of $7.60 in November 2021, the Reject Shop share price has been falling steadily. Its shares are now down more than 30% over the past 12 months.
Year-to-date, Reject Shop shares have fallen further, registering a loss of around 40%.
Based on today's price, the company has a market capitalisation of roughly $165 million.
