Paul Zahra, David Jones chief executive, calls it quits

DAVID Jones’ chief executive, Paul Zahra, will step down from the role, citing it was time for new leadership.

Paul Zahra at a dinner held at Cafe Sydney in Circular Quay to celebrate 100 Years of fashion brand Sportscraft.

DAVID Jones chief executive Paul Zahra has resigned as South Africa’s Woolworths takes control of the retailer, saying he will stay on for three months to ensure a smooth handover.

Mr Zahra said it was the best time for a change of leadership in the company, following the retailer’s $2.2 billion buyout by the offshore retailer.

Iain Nairn, chief executive of Country Road, which is also owned by Woolworths, will replace Mr Zahra in the top job at David Jones.

Matt Keogh, former managing director of Witchery, another brand in the South African group’s stable, has been appointed chief executive of Country Road, effective immediately.

Country Road chief operating officer David Thomas will also move to David Jones, taking up the new role of chief operating officer.

Woolworths Holdings Group boss Ian Moir oversaw the takeover of David Jones.

The executive reshuffle follows a tumultuous few months for the pair of Australian retailers.

Woolworths’ takeover of David Jones won both shareholder and regulatory approval after the Federal Court found retail magnate Solomon Lew did not gain a collateral benefit from the South African suitor’s agreement to a $213 million, or $17-a-share, mop-up bid for Country Road, most of which will flow to Mr Lew.

After months of speculation, Mr Lew revealed he had amassed a 9.89 per cent stake in David Jones prior to a shareholder vote on the Woolworths offer, which then won the backing of almost 90 per cent of David Jones shareholders.

Woolworths chief executive officer Ian Moir said his firm’s senior management in Australia had a strong track record and the capability to guide David Jones through a period of transition.

“The new management team will complement the existing skills and expertise at David Jones to create a strong, innovative and fashion-centric business,” Mr Moir said.

This article originally appeared on Business Spectator.