Two new directors have been appointed to Compass Hotel Group, allowing the company to pick up the pieces nearly two months after three-quarters of the board walked out.
Director Roland Hill today announced the company has terminated the advisory services agreement with the Compass Hotel Group Trust, allowing chairperson Anne Thoume and managing director Robert Smith to become directors of Compass Hotel Group.
Mr Hill has been appointed chairman of the company, which owns a string of pubs in Western Australia.
In a statement, Mr Hill said the new directors will be caretakers with a view to achieving short term goals including the development of a workable plan, stabilise relationships with the bank and to secure a new, experienced board.
He added the company's shares will remain suspended until the 2009 financial year report is lodged with the Australian Securities Exchange.
Shares in Compass had last traded at four cents in July when then chairman Rick Jones, chief executive and managing director Bryan Northcote and director Pater Kadar all announced their resignations, effective immediately.
No reason was given for their departure.
Late last month, financial controller and company secretary Mark Maitland, who was based in Perth, resigned after four months into the job. Malcolm McLean has been appointed as Mr Maitland's replacement.
The company has been under financial pressure after buying a number of pubs at the height of the property boom and the onset of the general economic downturn.
In its interim report released early this year, the company revealed it was in breach of its borrowing covenants related to its long-term finance facility.
Compass had reported an $80.7 million net loss for the six months to the end of December 2008, down from the previous corresponding period's net loss of $9 million.
