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New director faces Hi-Tec challenge

Nigel Cope
Friday 22 September 1995 23:02 BST
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NIGEL COPE

Hi-Tec Sports, the troubled sports-shoe company whose latest finance director lasted just eight hours, appointed a replacement yesterday as it announced a pounds 12.5m loss for the 15 months to April.

Paul Harrison, currently Hi-Tec's financial controller, will take up the director post in October. He will replace John Fallon who was sworn in on the morning of 2 June but quit the same afternoon after a disagreement over the role of company founder, chairman and majority shareholder, Frank van Wezel. Mr Fallon and two non-executive directors had suggested that the squash-playing, soccer-loving chairman should step down to become part time. Mr van Wezel disagreed and the three directors immediately resigned.

"I have no doubts that I will outlast my predecessor," Mr Harrison said. He added that he knew the company well and enjoyed a good relationship with Mr van Wezel. The company is still seeking replacement non-executive directors.

Hi-Tec sports has been struggling against powerful competitors such as Nike and Reebok. The pounds 12.5 losses reported yesterday, which include a pounds 10.7m loss on the July disposal of Confex, a leisurewear business, compared with a pounds 1.1m profit for the previous 12 months. Sales rose from pounds 107m to pounds 128m. The company said that trading since April had been profitable and cash-generative. However, it said the retailing climate in both Europe and the US remained lacklustre, with problems exacerbated by intense competition.

Mr van Wezel said: "Any improvement in consumer spending will have a positive and immediate impact on business and Hi-Tec will be able to look forward to an improvement in profits."

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