Country Road Group chief executive Raju Vuppalapati has announced his resignation following a downturn in sales and a lingering scandal over complaints handling by executives.
Mr Vuppalapati announced on Wednesday he will depart at the end of August to pursue personal interests after four years in the top job.
He said his time at the helm of Country Road Group had been an ‘honour and a privilege’, adding he was optimistic about its future prospects.
He added that the decision to leave was difficult but the right one.
‘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.
‘While 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
Mr Vuppalapati’s successor is yet to be announced.
His exit caps off a turbulent year for the Woolworths Holdings-owned retailer, which includes the Country Road, Mimco, Witchery, Trenery and POLITIX brands.
Country Road Group chief executive Raju Vuppalapati (pictured) will step down in August
Country Road Group owns leading retail brands including Country Road, Mimco, Trenery, Witchery and POLITIX
Sales across the brands plummeted by 6.2 per cent in first half of the 2024-25 financial year, citing economic and operational headwinds.
In October, Mr Vuppalapati warned staff that the the group was facing a ‘perfect storm’ of challenges after recording 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 previously working with him at RM Williams.
A number of staff members threatened to leave the company in protest, The Sydney Morning Herald reported.
Staff expressed their relief at Mr Vuppalapati’s departure.
‘About f***ing time. This should have happened a year ago,’ one told the Herald Sun.
‘It’s disappointing that there has been no accountability’.
Mr Vuppalapati’s exit caps off a turbulent year for the Country Road Group
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.
‘Raju and I have had ongoing discussions regarding his intent to leave CRG to pursue his personal interests.
‘After thoughtful consideration, Raju has decided that now is the right time for him to do that.’
