Country Road Group boss sensationally QUITS after retail giant had its worst financial year on record
Country Road Group CEO Raju Vuppalapati has announced his resignation following a downturn in sales and a lingering scandal into complaints handling by executives.
Mr Vuppalapati announced on Wednesday he will depart in August after four years in the top job, planning to ‘pursue personal interests’.
His exit caps a turbulent year for the Woolworths Holdings-owned retailer, which includes the Country Road, Mimco, Witchery, Trenery and POLITIX brands.
Sales across the brands fell by 6.2 per cent in the 26 weeks leading to December 29 last year facing economic and operational headwinds.
In October, Mr Vuppalapati warned staff the group was facing a ‘perfect storm’ of challenges after posting its worst financial year on record.
The downturn followed an external investigation launched in May 2023 after complaints were made against former chief supply chain officer Rachid Maliki.
Mr Vuppalapati had appointed Maliki to the role in 2022 after working with him at RM Williams.
According to The Sydney Morning Herald, some staff opposed the decision to retain Mr Vuppalapati following the scandal, with a number threatening to leave the company in protest.
Country Road Group chief executive Raju Vuppalati (pictured) will step down in August
Country Road Group owns leading retail brands including Country Road, Mimco, Trenery, Witchery and POLITIX
Mr Vuppalapati oversaw a companywide transformation after its South African parent sold off department store David Jones for $100m to private equity firm Anchorage.
Having purchased the store for $2.1billion in 2014, the sale marked a significant loss and forced Country Road Group to absorb extra costs as a result.
Woolworths Holdings chief executive Roy Bagattini said the outgoing chief executive had helped to reshape the group’s structure and culture.
‘The business transformation has been one of the most pivotal strategic initiatives undertaken by the group, positioning the business strongly to resume its profitable growth trajectory,’ he said on Wednesday.
Mr Vuppalapati said his time at the helm of Country Road Group had been an ‘honour and a privilege’, adding he was optimistic over its future performance.
‘Whilst these decisions are never easy, I take great comfort in knowing that I leave CRG well positioned to enter this next chapter with compelling strategies, a clear pathway to improving profitability, and talented teams committed to executing our plans,’ he said in a statement.
