PriceSensitive

Joyce Corporation (ASX:JYC) appoints new CEO, closes kitchen showrooms

Consumer
ASX:JYC      MCAP $118.8M
01 April 2020 12:04 (AEST)

Joyce Corporation (JYC) has announced the appointment of Keith Smith as the company’s permanent CEO.

The Perth-based company operates a portfolio of businesses, including Bedshed, Lloyd’s Auctioneers and Valuers, and KWB Group.

Smith has been in the position of acting CEO since July 1, 2019. Prior to taking a position with Joyce, Smith led operations in both finance and technology with listed and not-for-profit organisations.

Commenting on the appointment, Mike Gurry, Chairman of Joyce Corporation, said that Smith’s drive and leadership over the last 12 months confirmed him as an appropriate leader.

“Keith’s performance in the acting role had exceeded Board expectations and has eliminated the need to seek alternative options for the CEO,” he added.

As CEO, Smith will receive a total fixed salary of $373,000 per year. However, pursuant to an announcement dated March 27 this year, 50 per cent of his salary will be deferred under new cost-cutting measures. The amount deferred will be paid back to Smith once market conditions stabilise.

Joyce’s other management personnel and staff base will also take on pay cuts, as the company looks to maximise its existing cash reserves.

In a separate announcement also filed today, Joyce Corporation outlined the impacts of COVID-19 on its businesses.

KWB Group, which operates Kitchen Connection and Wallspan Kitchen and Wardrobes, has reported a decline in business of almost 100 per cent. As such, all showrooms have been temporarily closed with 92 full and part-time staff stood down.

KWB Group is currently working on a reopening plan, which will be implemented when trading environments swing back to more normalised operations.

Bedshed, however, is continuing to do business, albeit with a heightened awareness of slowing trade.

Joyce Corporation (JYC) shares are trading down 5.88 per cent to $0.80 per share at 11:58 am AEDT.

Related News