MARK Newman, CEO of OrotonGroup (ASX: ORL), has resigned after the company recorded a 52 percent drop in first half profits.
Newman has served as CEO and managing director of the fashion retailer for the last four years and his sudden departure was announced after the company revealed its half year net profit had slumped to $1.8 million.
Ross Lane, a non-executive director and major shareholder, has assumed the CEO role on an interim basis but has said that Newman will assist in the transition period.
Newman joined OrotonGroup in April 2010 and was appointed CEO and managing director in August 2013.
Chairman of OrotonGroup, John Schmoll, says he is confident that Lane, who was managing director of Oroton Group frm 1996 to 2006, is more than qualified to tackle this transition period as interim CEO.
"[Lane] has an intimate knowledge of OrotonGroup's business and current initiatives," said Schmoll.
"This knowledge together with Ross' broad retail experience from active participation in the successful growth of a number of other retail businesses means Ross is ideally qualified to lead the company during this important period of transformation."
Newman's departure isn't the only big news to come out of OrotonGroup today, as the company confirmed on the ASX that it issued more than 1,250,000 fully paid ordinary shares at an issue price of $1.45 earlier last week.
The issuing was related to consideration for Oroton's acquisition of 4,500,000 new ordinary shares in sartorial website The Daily Edited (TDE).
It has been just over two weeks since Oroton announced it would invest $4.5 million for a 30 per cent stake in the site.
Oroton executives are hoping its partnership with TDE will attract a younger market and expand its options for vending platforms.
OrotonGroup's shares are up a slight $0.01 to $1.62 at the time of writing.
Business News Australia
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