Endeavour chairman Ari Mervis quits amid board dispute

The executive chairman of Dan Murphy’s and BWS operator Endeavour Group has suddenly quit his role over “disagreements with the board” as incoming chief executive Jayne Hrdlicka disrupts business as usual before she officially begins in the role next year.

In a statement to the ASX on Monday morning, the $7.2 billion pubs and drinks giant said Ari Mervis had resigned from the executive chairman role, which has dual responsibilities of chairman and chief executive, effective immediately.

Endeavour executive chairman Ari Mervis has abruptly resigned, mere months after appointing Jayne Hrdlicka as CEO.Credit: Louise Kennerley

Hrdlicka, who helmed Virgin Australia for four years, does not commence in the role until January 1, but has been consulting to the board twice a week as the company undertakes a “strategy refresh” that takes stock of the company’s performance across its various businesses.

A hunt has commenced for Mervis’ replacement, whom the board hopes will begin before the year ends.

Independent board director Duncan Makeig will step in as interim chairman, while chief financial officer Kate Beattie will act as interim chief executive.

“The board acknowledges Ari’s service to Endeavour group, a company we all agree has an irreplaceable asset base and unique opportunities in the future,” Makeig said in the ASX statement.

“The board and management are undertaking a strategy refresh which will include a portfolio-wide examination of the group’s performance, key business drivers and execution across retail, hotels and the Pinnacle business, with the clear aim of maximising long-term shareholder value.”

Hrdlicka’s appointment was announced in late April this year following the departure of long-time CEO Steve Donohue. Her task will involve turning around Endeavour’s declining share price and business performance.

More to come

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