Thorn Group Ltd (ASX: TGA) has provided an update regarding its ongoing strategic review and announced that company CEO Tim Luce intends to step down.
What Is Thorn Group?
Thorn Group is a diversified financial services organisation which owns the Radio Rentals chain and provides alternate consumer and commercial financing solutions, consumer and commercial leasing products and fully integrated debt collection and receivables management.
CEO Indicates Intention To Step Down
In an announcement released to the ASX this morning, Thorn Group revealed CEO Tim Luce’s intention to step aside from the top job in order to pursue other interests. The news brings further instability to a company that has been battling lawsuits and desperately trying to arrest the decline in its business operations.
Luce remains committed to working with the board through the strategic review process and the recruitment of a suitable replacement before he departs.
Strategic Review Is Ongoing
Thorn Group launched a strategic review on April 1 this year, which is nearing completion according to a press release from company management this morning.
The review comes on the back of a prolonged period of poor share price performance. At one point in time, Thorn Group shares traded above $3 but those days are long gone with the share price currently trading close to an all time low of $0.25 at the time of writing.
Management have started a process of Radio Rentals store rationalisation with 3 stores having been closed in recent weeks and a further 5 stores to be closed over the next 30 days. Once this is completed, the company will have 61 Radio Rentals stores remaining along with its online capability.
Corporate costs have remained elevated due to the legal costs incurred in defending the ongoing class action and recent advisory costs associated with the strategic review.
Trading Update
The outlook remains challenging as revenue declines and general market uncertainty continues to hover over the retail sector like ominous storm clouds.
The company said that a further update would be provided at the its AGM on 30 August 2019.
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At the time of publishing, Luke has no financial interest in any companies mentioned.
