Accolade boss steps down following withdrawal from IPO

Accolade CEO Michael East has stepped down from the Australian wine giant, citing the company’s withdrawal of its IPO offer for his decision to take early retirement.

Michael East is stepping down as Accolade’s CEO

He is the second chairman to have stepped down in less than a year, following the surprise exit of Paul Schaafsma last year.

“I had always intended to retire at the beginning of 2019 and I believe it is the right thing to do so now in view of the longer time scale for an eventual IPO,” East said in a statement.

East was appointed deputy deputy chief executive and announced as Schaafsma’s successor in August and officially took over the top spot in September, although this was not immediately confirmed.

Newly appointed chairman Jim Anderson, who has been a director of the company for four years and managing director of Accolade’s private equity owners Champ PE since last May, will step into the top job.

A company statement said he would lead the company as it “beds down and realises a number of value adding initiatives”, pointing to the integration of the premium brand it acquired last November from Lion, Fine Wine Partners, the construction of its own bottling line and warehousing facility in South Australia, and its plans to boost sales and distribution in China.

Earlier this month, the company’s private equity owner confirmed the long-anticipated IPO offer announced last year was now off the table – but said it may “revisit” it in a year or so.

The Australian company is likely to have been hit by currency-related Brexit headwinds with John Haddock, chief executive of Champ PE noting that the company was “adjusting” to the changing UK market, which db understands accounts for around 55% of its turnover.

“The fall in the pound makes it much harder for exporters selling into the UK, who must sacrifice margins to stay competitive on the shelves of supermarket retailers,” Haddock was reported to have told the Australian Financial Review.

Accolade UK office has also seen recent changes at the top. Last month Ade McKeon was announced as the general manger for the UK and Ireland, replacing outgoing general manager Rob Harrison.

Harrison took over the UK role in December 2015, shortly after Paul Schaafsma moved to Australia to head up the company as CEO.