‘Grave concerns’: Bubs co-founder, investor group move to spill board

The co-founder and former chief executive of infant formula maker Bubs Australia will lead an attempt to spill the company’s board.

Kristy Carr and a group of Bubs shareholders launched the Save our Bubs group on Wednesday, calling on other investors to support their moves to install a new leadership team including chief executive Peter Nathan, the former chief executive of a2 Milk in Australia.

Bubs co-founder Kristy Carr said in a video message that she had “grave concerns” about the company while in the current board’s hands. Credit: Louise Trerise

The bid for a board spill is another escalation in the stoush at the company after Carr was ousted from her chief executive role earlier this month, with the board citing her “failure to comply with reasonable board directions”.

In a statement on Wednesday afternoon, the Save our Bubs group said the company’s current board has attempted to take over Bubs by stealth and without shareholder consultation.

“I have grave concerns about the future of the company in their hands,” Carr said in a video on the Save our Bubs website.

The group has called for an extraordinary general meeting to remove the current directors and replace them with a new team including Peter Nathan, former Elders deputy chair James Jackson, and manufacturing expert Rupert Soar.

Line workers at Bubs’ Dandenong factory in Victoria.Credit: Louis Trerise

The move has the backing of Bubs’ second-largest shareholder, Chemist Warehouse co-founder Jack Gance, who said he was saddened by the termination of Carr and former executive chairman Dennis Lin from the business.

“The current board have spoken to me and indicated that a change was necessary, but with no clear path to improvement and no succession plan,” Gance said. “I feel disappointed at the events that arose. I was only told of the changes after they were implemented by the new board.”

Gance said he had met Peter Nathan and believed he would make a great chief executive for the business.

Bubs Australia informed investors on Wednesday morning that Carr and Lin had resigned as non-executive director of the company, as speculation heated up about a possible board spill.

In a post on LinkedIn, Carr urged female entrepreneurs not to apologise for their passion and focus on success.

“Female founder CEOs of ASX-listed companies are a rare breed, so I feel both proud and privileged to have founded and led Bubs Australia through what I can only describe as an extraordinary 18-year journey,” she said.

She thanked staff in the “Bubs Family” that she was “prohibited from saying goodbye to.”

“There will always be bullies who try to bring you down. Even if they win, they do not define who you are and cannot take away what you have achieved,” she said.

“They are your best qualities that will deliver your heartfelt mission,” she said.

Bubs Australia shares declined by 2.6 per cent at Wednesday’s open and were sitting at 18.5 cents just after 1:30pm. The stock is down almost 40 per cent year-to-date.

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