Paul Zahra has resigned as the chief executive of department store giant David Jones.
Mr Zahra is resigning for personal reasons and will step down when a successor is found, the company told the Australian Securities Exchange on Monday after the market had closed.
The man who took over from Mark McInnes in June 2010, following a sexual harassment scandal, will continue working with the full support of the board.
“Whilst much has been achieved and the company is well placed for the future, I believe it’s time for a change for me personally,” Mr Zahra said in a statement.
David Jones chairman Peter Mason said Mr Zahra would leave the retailer in a solid financial position.
“I thank him for his contribution as CEO,” he said in a statement.
“I look forward to working with Paul to ensure a smooth transition of his role to his successor.”
Mr Zahra’s resignation was announced after David Jones’ share price edged up by two cents to $2.85.
But the company faces weakness in the retail sector, as online shopping encroaches on the territory of traditional department stores.
David Jones made an underlying profit of $101.6 million in the year to the end of July, a slight increase from the previous financial year but a far cry from $170.8 million in fiscal 2010.
Total sales, however, fell by 1.2 per cent.
Mr Zahra, who took up his job in June, 2010, thanked David Jones for giving him the opportunity to lead it.
“David Jones is an amazing company and a brand I have always been proud to be part of,” he said.
“I am sincerely grateful for the opportunities I have had and believe that I have made a valuable contribution.”
In a statement, David Jones said Mr Zahra came to the top job “facing a range of difficult issues” without mentioning Mr McInnes’ resignation three years ago, after a sexual harassment complaint from a 25-year-old female junior publicist.
“He has successfully guided the company through the aftermath of the global financial crisis and a challenging retail environment and led the future strategic direction plan, which is well into implementation,” the company said.
