AUSTRALIA: Franklin Tate to stand down as E&T CEO
Evans & Tate CEO Franklin Tate has been forced to step aside as part of a A$10m financing deal with ANZ.
In a statement released today (19 July), the wine group said that ANZ had approved the provision of an additional A$10m in short-term working capital, an extension to the company's existing working capital facilities with the bank.
As a condition of the funding, however, E&T had to agree to implement a new management structure and continue work to improve the company's business process in conjunction with 333 Performance.
The crucial point of the management restructure is the separation of the roles of chairman and CEO, both of which are held by Franklin Tate at present.
Evans & Tate intends to commence the search for a new CEO and, on the appointment, Tate will move to non-executive chairman and will focus on the promotion of E&Ts various brands and sales effort.
The new management structure will also include the appointment of two new non-executive directors to the board. One of these will be Robert Scott, a chartered accountant with 35 years experience in the fields of corporate advisory and taxation. Scott is currently the chairman of Amadeus Energy ltd, BioMD ltd and Australian Renewable Fuels ltd. He is also a director of Homeloans ltd.
In a statement, Franklin Tate said: "This funding will allow the company to implement our previously announced inventory reduction program in an orderly fashion.
"This includes our reduced vintage intake for this financial year, the forecast sales of unallocated inventory in the order of A$8m and the reduction of packaged stock by approximately A$4m over the next 12 months.
"In addition, I believes that the new management structure changes announced today are appropriate and place Evans & Tate in a stronger position for the future."
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