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Esprit goes into tailspin as chief executive exits

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The resignation of a second top manager in as many days at Esprit Holdings is likely to send the Hong Kong fashion retailer's share price lower today as investors weigh the implications for the company's turnaround strategy.

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Hans-Joachim Koerber resigned last night from his post as chairman with immediate effect, just one day after chief executive Ronald van der Vis (pictured) said he would leave on or before July 1 next year.

Chief financial officer and executive director Chew Fook Aun quit in early December.

Yesterday, the price of Esprit shares on the Hong Kong stock exchange dived 21.8 per cent to HK$10.54 each, the biggest intra-day fall in 15 years, on news of van der Vis' plans to leave. The company asked for trading in its shares to be halted in the afternoon.

Raymond Or Ching-fai, former head of Hang Seng Bank and a senior manager at HSBC, was appointed chairman of Esprit to replace Koerber. Or is an independent non-executive director of the company.

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Meanwhile, Paul Cheng Ming-fun, former chairman of real-estate-investment-trust Link Management, was appointed deputy chairman. Cheng also serves as an independent non-executive director of Esprit.

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