Samsonite CEO Ramesh Tainwala steps down after short-seller attack
Company repeats view that report by Blue Orca capital was misleading, and issues point-by-point rebuttal of accusations
Samsonite, the world’s biggest luggage maker, has replaced its CEO, Ramesh Tainwala, after an activist investor accused him of lying about his academic background.
The company’s shares plummeted last week and were later suspended after US short-seller Blue Orca Capital made that allegation and also accused Samsonite of “questionable accounting practises” and poor corporate governance.
News of Tainwala’s departure sent Samsonite’s shares up 10 per cent in Hong Kong when they resumed trading on Friday, recovering virtually all the ground they lost when Blue Orca’s report caused the shares to fall a total of 21 per cent on May 24 and 25.
“The board thanks Ramesh for his dedication and many contributions to the success of Samsonite over the years,” said Timothy Parker, chairman of the company, in the statement. “While the board notes that since the company’s IPO in 2011, its disclosure of Ramesh’s educational background has been accurate, the board also takes seriously the allegation that has been made about his academic credentials. Ramesh tendered his resignation, citing personal reasons.”