Country Road Chief executive Raju Vuppalapati announces resignation amid tanking sales, internal culture issues
Chief executive Raju Vuppalapati announced on Wednesday he would depart, following four years in charge.
Country Road is owned by South African conglomerate Woolworths Holdings, which also owns Mimco, Witchery, Politix and Trenery.
'It has been a privilege to lead our passionate team and iconic brands. I know that I am leaving Country Road Group well positioned to pursue its next chapter with compelling strategies, a strengthened culture and clear pathway to reignite profitable growth,' Mr Vuppalapati said in a statement.
Audio of a tense staff meeting in 2024 was obtained by The Australian, where Mr Vuppalapati was heckled by staff over sexual harassment and bullying allegations within the company.
Woolworths Holdings chief executive Roy Bagattini said Mr Vuppalapati was leaving the business in a 'foundationally much stronger position'.
'Raju and I have had ongoing discussions regarding his intent to leave CRG to pursue his personal interests,' he wrote.
'After thoughtful consideration, Raju has decided that now is the right time for him to do that.'
Mr Vuppalapati will leave the company at the end of August or 'until such time as the new CEO is appointed'.
Country Road called in a consulting firm to repair the company culture, two executives resigned and the Woolworths Holdings chief executive Roy Bagattini flew in from South Africa to the Melbourne offices to hear details of the allegations.
Woolworths Holdings sold department store David Jones in 2022 for $120m, but retained ownership of the Country Road Group.
The clothing business has been struggling to attract shoppers.
Country Road's operating profit fell 70 per cent in the second half of 2024, following a 66 per cent dip in the 2023/24 financial year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News AU
15-07-2025
- Sky News AU
Major Aussie retailer reveals multiple new stores in pipeline following shock closure of flagship location in central Sydney
A major Aussie retailer has revealed it will be opening multiple new or refurbished stores by the end of the 2025, amid plummeting sales. Country Road Group, behind popular fashion and lifestyle chains including Country Road and Witchery, is set to close one of its flagship stores in Queen Victoria Building in Sydney's CBD. The retailer's lease on its Pitt Street Mall Country Road store is also set to expire in 2028. It comes as sales for the chain, which is owned by Woolworths Holdings Limited, fell 6.2 per cent for the first half of the 2024-25 financial year. An 8 per cent drop in sales was recorded for the 26 weeks into December 29 last year, and operating profits fell 71.7 per cent to $14.2 million. However, it has now been revealed that Country Road Group is planning to open a number of new stores within months, with a spokesperson saying the retailer will expand its bricks-and-mortar presence in a handful of major cities. 'From time to time, we review our retail store portfolio to ensure we're continuing to meet the needs of our customers,' a spokesperson has said. 'We are committed to delivering great experiences throughout our networks and we are investing in our stores, with 10 new or refurbished stores opening by the end of the year.' New store locations planned by Country Road Group include on Brisbane's Queen Street Mall in August and new Country Road, Trenery and Witchery Chatswood stores at Chatswood Chase in Syndey's north in October. A refurbished Country Road Mosman will open its doors in September, while the chain's Eastland store will move to a larger store next month, and a larger and refurbished Burnside store will open at the Burnside Village redevelopment in October. New Trenery, Mimco, and Politix stores will also open in November as part of a relaunch of 260 Collins St shopping centre in Melbourne. Regarding the company's lease on its Pitt Street Mall location, the spokesperson said Country Road Group will attempt to move the store elsewhere if a 'change is required'. 'Country Road Pitt Street Mall has a lease in place for the next three years, until August 2028. If a change is required due to the end of lease, our aim will be to find a suitable new location,' the spokesperson said. Country Road, which began in 1974 as a niche women's shirting business, now has 653 stores throughout Australia, South Africa and New Zealand. The company has established itself as a well-known lifestyle brand renowned for stylish, high-quality apparel, accessories and homeware.
7NEWS
14-07-2025
- 7NEWS
Country Road breaks silence over store closures and plummeting sales
Country Road has sought to allay fears the beloved brand is going out of business, amid a number of store closures across Sydney and plummeting sales in its latest results. The brand, which has been a staple in Australian households since its inception in the 1970s, has closed its Market St store at the entrance of the Queen Victoria Building in Sydney. Country Road's Military Rd store in Mosman is closed for renovations and its Pitt St Mall store is earmarked to be shut when the lease expires in 2028. But far from lessening its retail footprint, the brand was expanding, Country Road told 7NEWS on Tuesday. 'From time to time, we review our retail store portfolio to ensure we're continuing to meet the needs of our customers,' Country Road said. 'We are committed to delivering great experiences throughout our networks and we are investing in our stores, with 10 new or refurbished stores opening by the end of the year. 'This includes our beautifully renovated Mosman store reopening in September, a new Country Road flagship store in Queen St, Brisbane, opening in August and three new stores opening in Chatswood Chase in October.' Country Road and Trenery are owned by South Africa's Woolworths Holdings, which previously owned department store David Jones. Johannesburg-based Woolworths Holdings also owns Mimco, Witchery, and POLITIX. In its latest results, Woolworths Holdings revealed an 8 per cent fall in sales for the 26 weeks to December 29 last year. The brand's operating profit plunged almost 72 per cent to just $14.2 million. Country Road, founded in 1974, is known as one of Australia's most beloved lifestyle brands and one of the first local brands to tackle the American market.
West Australian
14-07-2025
- West Australian
Storage giant Abacus Storage King gets $2.17b sweetened offer from Ki Corporation, Public Storage
Shares in Abacus Storage King closed higher on Monday after the self-storage giant received a sweetened $2.17 billion takeover offer from a consortium led by South African tycoon Nathan Kirsh. Mr Kirsh — who already holds a 59 per cent stake in the real estate investment trust through his family office Ki Corporation — and New York-listed Public Storage first lobbed a proposal in April, valuing the target at $1.93b. But the $1.47-a-share bid was rejected the following month, with Abacus Storage King saying it undervalued the company. At the time, the buyout partners said they were offering certainty, liquidity and an attractive premium to minority security holders and were uniquely positioned to deliver compelling value and the best long-term outcome for employees, customers and additional stakeholders. Abacus Storage King on Monday said the consortium had now come back with an improved offer priced at $1.65 a share — a 15 per cent increase on the original bid. However, this was still almost 5 per cent lower than a previous independent valuation review that showed its portfolio of about 200 self-storage spaces was worth $1.73 a share. The sweetened bid sent shares in Abacus Storage King up almost 6 per cent to $1.562. The business owns and manages 206 self-storage spaces across Australia and New Zealand, making it one of the industry's biggest players. Its network includes 68 sites in NSW, 44 in Queensland, 42 in Victoria and 17 in WA. It has 24 sites in NZ. The Kirsh-led consortium's offer comes as Abacus Storage King's local rival National Storage recently upped its stake in the takeover target to 9.51 per cent — a strategic move that appears designed to block the proposal. National Storage first acquired a 4.78 per cent stake in April. Abacus Storage King on Monday said the independent board committee had considered the revised proposal together with its adviser, Macquarie, and intends to provide a six-week period of due diligence to the consortium. The revised offer is subject to a number of conditions, including regulatory approvals from the Foreign Investment Review Board and the New Zealand Overseas Investment Office. 'At present there is no certainty that the parties will be able to agree terms to implement the revised proposal or that, even if terms are agreed, the conditions to the revised proposal will be satisfied or waived,' Abacus Storage King said. Analysts at Citi said while the new offer was stronger than the previous one, 'there remains risk on execution from acceptance of minority shareholders'. 'In our view, a further revised offer above NTA per share may be necessary to convince minority shareholders to agree to the deal with anticipated cap rate compression and compelling Australian self-storage fundamentals,' they said.
