Boss out at surf retailer

THE chief executive of collapsed Gold Coast online surfwear group SurfStitch, Mike Sonand, has resigned after only 18 months and will not be replaced for now, administrators say.

SurfStitch administrators John Park, Quentin Olde and Joseph Hansell, of FTI Consulting, announced yesterday that Mr Sonand was ceasing as chief executive.

In a statement, they noted the group was in administration and trading in its shares was suspended.

“Accordingly, no replacement appointment for chief executive officer will occur at this time,” they said. “Depending on the outcome of the administration, a new or interim chief executive officer may be appointed in due course.

“In the interim, the management team at SurfStitch, supported by the administrators, will continue to lead and manage the business’s Australian operational teams.’’

Mr Sonand was appointed chief executive in June last year, promising to resuscitate earnings at the struggling company in the wake of a string of profit warnings and the shock departure of its founding chief executive, Justin Cameron.

On his arrival, Mr Sonand was highly critical of the former management of SurfStitch and the aggressive acquisition strategy that ultimately contributed to its collapse in August this year.

Mr Sonand then accused former managers of failing to properly integrate the six SurfStitch acquisitions.

“Three capital raisings, six acquisitions and one closure, and that was in less than 12 months,’’ Mr Sonand said when asked about SurfStitch’s first year as a public company.