Chemist Warehouse billionaire wades into Bubs stoush
Jack Gance, the billionaire businessman behind Chemist Warehouse, says the board of Bubs has no plan and no chief executive, warning the brand’s value could be “lost in almost the blink of an eye”.
In a letter, Mr Gance, the infant formula group’s second-largest investor, urged shareholders to support the former a2 Milk Company executive Peter Nathan as the company’s next chief executive. Shareholders will vote later this month on whether to roll the current board, led by ex-King & Wood Mallesons partner Katrina Rathie, and replace them with directors closely aligned to the company’s founders, Kristy Carr and Dennis Lin.
Chemist Warehouse co-founder Jack Gance, Bubs’ second-biggest shareholder. Tash Sorensen
“I was surprised by the recent board and leadership changes,” he wrote.
“More than that I am worried that the disruption brought on by the current board, without any obvious backup plan or new CEO, will lead to enormous brand damage, here and overseas, and further erode shareholder value.
“Bubs’ brand value has been hard won over many years, and it is at a point where it could be lost in almost the blink of an eye, undoing the investment we and other strategic partners have made in promoting the brand.”
Ms Rathie responded: “Any new CEO needs to come into the business with clear air and the full support of the board behind them.” The current board is poised to name a successor in August.
Bubs has a market capitalisation of less than $200 million, but has been touted as a contender to become the next major agribusiness originating in Australia. It exports infant formula to two lucrative markets, China and the United States. In the latter, it is one of only a handful of companies allowed to import products in what has
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