The Reject Shop CEO Phil Bishop has suddenly departed, with the retailer citing ‘personal reasons’

The Reject Shop boss Phil Bishop has suddenly resigned from the discount retailer after only seven months in the role, citing ‘personal reasons’.

Well known retail store the King of Knives at Cairns Central is up for sale for the first time. King of Knives owner Violet McKelvey has worked at the Cairns Central store since it opened 27 years ago and has owned it for 17 years. Picture: Brendan Radke

The Reject Shop chief executive Phil Bishop has suddenly resigned from the discount department store after only seven months in the role, with the company citing “personal reasons” for his shock departure at a time when the retailer and the sector is facing huge economic challenges.

It came as The Reject Shop updated the market to its recent trading performance, showing slight gains in sales and earnings for the December half and an upbeat Christmas.

Mr Bishop is the second CEO in less than 12 months of the discount retailer, which has struggled to maintain a strong profit trajectory through Covid-19 lockdowns and other headwinds that has dented the company’s sales and earnings.

The chain, whose biggest shareholder is packaging millionaire Raphael Geminder, has initiated a number of initiatives and new strategies to arrest its lacklustre profitability in recent years but is now facing boardroom and management disruptions from its revolving door of CEOs.

It isn’t the first time that Mr Bishop, who has three decades of experience in the retail sector, has suddenly departed a role for no fully explained reason, having been appointed merchandise and marketing director for hardware giant Bunnings in 2020 but only lasting 13 months in the role, according to his LinkedIn profile.

In 2018, he was made the chief operating officer for Officeworks, which like Bunnings is part of the Wesfarmers conglomerate, and was out the door after a year.

When Mr Bishop was announced as the new CEO of The Reject Shop in June, shares in the struggling retailer bounced 20 per cent on the news, which almost made up for the 25 per cent dive in late April following the shock departure of former CEO Andre Reich.

In April, when Mr Reich left the company – again like Mr Bishop with no clear explanation – it shocked investors given he was only halfway through his five-year plan to turn around the company’s performance and had only been CEO for two years.

Mr Bishop was tasked to lead the retailer through one of the most volatile trading environments seen in decades, where discretionary retailers such as The Reject Shop could see their earnings squeezed.

Chairman Steven Fisher said: “On behalf of the board and The Reject Shop team, we thank Phil for his work over the past six months and wish him well. A search for a new CEO will commence immediately.”

The Reject Shop has lost its second CEO since April with Phil Bishop suddenly departing after only seven months in the role, citing ‘personal reasons’. Picture: Supplied

The only reason cited for his sudden departure was for “personal reasons” with his exit effective immediately.

In the interim, Clinton Cahn, chief financial officer, has been appointed as acting CEO and will also continue to fulfil his CFO responsibilities during this time.

Mr Cahn declined to comment on the reasons for Mr Bishop’s departure when contacted by The Australian.

The company and Mr Bishop have agreed for him to receive payments from the company equivalent to his six months’ notice period plus any statutory entitlements. Any performance rights held by Phil have been lapsed.

In a trading update provided alongside the announced departure of its CEO, The Reject Shop also said it was expecting first-half sales of $439.7m, up 3.5 per cent on the prior corresponding period. Comparable store sales were up 2.4 per cent.

For the December half, The Reject Shop was forecasting EBIT in the range of $22.5m and $23.5m. This compares to $20.5m in the previous corresponding period.

The Reject Shop said it had generated positive comparable store sales growth during the first four weeks of the second half, noting that sales in the previous corresponding period were adversely impacted by the Omicron variant of Covid-19.

“The solid preliminary half-year result was underpinned by a strong Christmas trading period and we are pleased with the ongoing positive momentum achieved during January. I am confident that the combination of our improving merchandise offering, experienced senior leadership team and strong balance sheet positions the company well to create value for shareholders by growing comparable store sales and continuing to expand the store network,” Mr Fisher said.

Shares in Reject Shop ended up 7c at $4.17.

Meanwhile, rival discount retailer Best & Less announced on Wednesday that its CEO Rodney Orrock will depart the business at the end of his current period of medical leave at the end of this month.

The retailer said while Mr Orrock continued to make good progress in his treatment and recovery from lymphoma, he had decided to step down to prioritise his long-term health, a decision the Best & Less board fully supports.

The external search process for a permanent CEO is progressing well, with Jason Murray to remain as executive chair until a new CEO starts in the role.