Redbubble founder Martin Hosking retakes the reins

The management shake-up is part of a review of Redbubble’s strategy and its operations.

Redbubble founder Martin Hosking. Picture: Stuart McEvoy

Redbubble founder Martin Hosking has been forced to retake the reins of his company, with the listed online artwork marketplace showing its CEO Barry Newstead the door.

Mr Hosking, the largest shareholder in Redbubble, stepped down as CEO in 2018 and has been appointed interim CEO.

Mr Newstead was the chief operating officer of the company prior to his stint as CEO. His departure comes despite Redbubble saying its results for the first half of fiscal 2020 should land within guidance.

Redbubble expects its operating revenues to lift 25 per cent in the period and register positive cash flow for full year 2020.

Company chair Richard Cawsey said that the management shake-up was part of a review of Redbubble’s strategy and its operations.

“Following extensive deliberations, the non-executive directors have decided that a change in leadership is necessary.”

Mr Newstead said he had achieved some significant milestones during is time at the company.

“I am proud of my track record at RB Group and especially of the successful fundraising, acquisition and embedding of TeePublic and hitting the key milestone of our first positive operating EBITDA as a listed company in our 2019 FY,” Mr Newstead said.

Redbubble posted operating profit of $3.4m in fiscal 2019 compared to an operating loss of $3.8m in the previous year.

However, its final earnings before interest, taxes, depreciation, and amortisation (EBITDA) was still in the red with a loss of $3.8m, weighed down by losses from “other income/expenses” more than doubling to $7.3m.

Redbubble bought US rival TeePublic in 2018 for $57.7m.

Mr Cawsey said on Tuesday that Redbubble’s fundamentals remain strong.

“We are a market leader in our industry and have a unique business that is difficult to replicate, with strong fundamentals and a demonstrated growth strategy.”

“The company’s focus must be on core business and investing in the opportunities before the company,” he said.