- Pipe manufacturer Tubi (2BE) has been hit with resignations from key members of its board
- After losing its Chairman, two non-executive directors and a CFO and Secretary, Tubi plans to appoint a new board over the next four weeks
- Managing Director Marcello Russo also gave notice of his resignation six months ago but has since committed to stay with the company
- 2BE has now stood-down all plants and found interim positions for key personnel until operations recommence
- Amid the upheaval, Hopetoun —the owner of Tubi’s Plant 5003 — has resolved not to extend the company’s lease, deciding to sell the operation
- Meanwhile, difficult trading conditions in the March quarter, propelled by COVID-19 and supply issues, have exacerbated a problematic period for Tubi
- The company expects sales for the quarter to March 31 to be up to 80 per cent lower than the corresponding period last year
- Tubi has been in a trading halt since April 6 with shares last trading at 4.9 cents
Pipe manufacturer Tubi (2BE) has been hit with resignations from key members of its board.
Chairman Simon Bird, non-executive directors Brent Emmett and Tony Willsallen, and Chief Financial Officer and Secretary Ariel Silvikofsky, have all resigned.
Interestingly, Managing Director, Marcello Russo, gave his notice six months ago but has since committed to stay with the company to deliver improved outcomes for shareholders.
The exits come at a difficult time for the company, with the former board unable to agree on a strategy and financing arrangements.
Further, with the outgoing directors unwilling to commit to new sales contracts, the company has now stood-down all plants and found interim positions for key personnel until operations recommence.
Amid the upheaval, Hopetoun —the owner of Tubi’s Plant 5003 — has resolved not to extend the company’s lease, deciding to sell the operation instead.
Meanwhile, difficult trading conditions in the March quarter — propelled by COVID-19 and supply issues —have exacerbated a problematic period for Tubi.
In fact, the company expects its sales for the quarter to March 31 to be up to 80 per cent lower than the corresponding period last year.
Looking forward, and with its sights set on improving value for shareholders, Tubi plans to appoint a refreshed and motivated board in a process that it says will likely take around four weeks.
In the meantime, the company has identified an interim CFO and secretary and is looking to engage a financial and strategic advisor.
Tubi has been in a trading halt since April 6 with shares last trading at 4.9 cents.