Freedom Foods (ASX: FNP) has announced that there’s going to be a management change at the top.
About Freedom Foods
Freedom Foods is a food company that was started in 1986 with a focus on making nutritious and healthier food and beverages. It started with products in soy, rice milks and breakfast drinks. Some of its brands include Freedom, Milk Lab, Crafted Blends, Messy Monkeys, Australia’s Own, So Natural, and Goodness.
What has happened today?
The Board of Freedom Foods announced that last night it accepted the resignation of Managing Director and CEO Rory Macleod. Mr Macleod has resigned from all Board and executive positions.
Further to what the company announced a week ago, Freedom Foods has engaged Ashurt and PwC to advise and assist with ongoing investigations into the company’s financial position.
As a reminder, Freedom Foods is reviewing its accounts to confirm the amounts currently stated. For example, so far the company has written down the value of its inventory by $60 million. It also announced another negative adjustment of approximately $10 million was needed for bad debts.
It could take some time for all of the issues to be analysed and accounted for. It’s good that Freedom Foods is taking the steps to resolve the problems, but there could be a lot more pain in store for shareholders if any more writedowns or write-offs are required. Freedom Foods shares are still in a trading halt.
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Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.