The company faces the discomfort of digesting a €25 million hit after complications arising from the implementation of a complex upgrade to software systems at its wine wholesaler. business.
The task has proven to be “significantly more challenging and disruptive than originally anticipated”, and the company admitted that it had a “consequential material impact on service and profitability within MCB (Matthew Clark and Bibendum)”.
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C&C is currently investing in “material additional costs and resources” this month before finding a permanent solution and resuming normal service.
The thousands of bars, restaurants and hotels across the UK that rely on Matthew Clark and Bibendum for their wine and spirits supplies are unlikely to have been overly happy as service levels deteriorated amid software chaos in April, especially those looking to stock up on key products. events such as Holy Week and the two long weekends in May, one of which featured the coronation of the King.
And judging by today’s stock price reaction, the company’s investors weren’t impressed, sending the stock tumbling 17% in morning trading.
The opposite may indicate that investors are unconvinced how the beverage company is handling the episode, and furthermore, or whether a change in CEO will make much of a difference.
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C&C announced today that Chief Executive Officer David Forde had told the board he wished to resign and stepped down as a director effective immediately, “after having navigated C&C through the challenges of the Covid-19 pandemic”.
CFO Patrick McMahon has taken over from Forde and will be assisted by Chairman and pub industry veteran Ralph Findlay, who has been named chief executive to “support the management transition”, while Mr. McMahon temporarily fills the roles of CEO and CFO.
The company did not say that Forde had paid for the software glitch with his work, but it was certainly hard to avoid that conclusion.