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Adairs (ASX: ADH) CEO Mark Ronan has announced plans to retire from the company early next year, ending more than 17 years with the homeware retailer - the last eight as CEO.
While the reasons for Ronan’s departure, other than to pursue new opportunities, have not been disclosed, the board says it accepts his decision and will begin a search for his replacement.
Ronan first joined Adairs in 2007 in the finance department and subsequently held the positions of head of merchandise planning and general manager of retail operations before becoming chief operating officer.
He replaced David McLean as CEO in November 2016, a little over a year after Adairs listed on the ASX following a $218 million IPO that valued the company at almost $400 million.
In announcing his resignation today, Adairs notes that Ronan played a key role in the 2015 IPO and led two acquisitions, comprising Focus on Furniture and online furniture business Mocka, which the company says diversified the group and helped it navigate the challenges of COVID-19.
“Adairs has been a large part of my life for nearly two decades and I feel that the time has come to make a change, consider what the future holds, and pursue new opportunities,” says Ronan.
“This was not an easy decision, and I will certainly miss the friendship, support and passion of our team, who have been and always will be critical to the group’s success.
“Recognising this, my focus is on managing the company and supporting our team through the transition period ahead.”
Adairs says Ronan has agreed to remain as CEO until early 2025, providing the company with “significant time to identify, appoint and handover his role and responsibilities to a successor in due course”.
“After significant discussion, we have accepted and understand Mark’s decision,” says Adairs’ chair Kate Spargo.
“Mark is a genuine retailer who appreciates the importance of exciting customers through both product and service, whilst his passion for excellence in retail execution has been an asset for the company over many years.
“We thank Mark for his ‘team first’ leadership approach, and the very significant contribution he has made to Adairs.”
When Ronan took over as CEO at the end of 2016, Adairs had 147 stores generating $253 million in revenue and delivering $46 million in EBITDA in the FY16 year.
The company currently has 171 stores in Australia and New Zealand, along with a higher online presence through the Mocka and Focus on Furniture acquisitions, delivering total group sales of $591 million in FY24.
While sales were down 4.3 per cent for the year, leading to a 5 per cent fall in underlying EBITDA to $68 million, Ronan says cost controls and a focus on managing gross margins during the year had positioned the business for future growth.
Adairs is targeting six new Adairs stores and three new Focus on Furniture stores in FY25, and the company is optimistic about growth in sales and earnings in FY25.
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