Loss-making Swiss dairy and infant-formula group Hochdorf has revealed its board of directors is to be recomposed at the next annual general meeting.
The company has had a difficult 18 months after announcing profit warnings and then recording losses, undergoing re-financing and restructuring initiatives and changing its CEO. In May, Hochdorf launched a business review and in August it said it was “in the grip of a serious crisis”.
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Hochdorf said today (18 February) the board shake-up is a “logical consequence” of the extensive changes in the company’s shareholder structure since the AGM last April, meaning the majority of current board members will not be available for re-election.
“The future strategic direction and any adjustments to the company’s capital structure must be determined and implemented by the major shareholders,” according to a statement. “They were asked to propose representatives of their choice for the board of directors.”
The company said the existing board “has made enormous efforts over the past ten months to stabilise the Hochdorf Group, which has fallen into difficulties”.
It added: “These included extensive restructuring and refinancing measures and the appointment of a new operational management team.”
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By GlobalDataHochdorf said that due to the renewal of the syndicated loan and the sale of Pharmalys at the end of 2019, it is now back on “somewhat more solid ground and can take a prudent approach to future planning”.
It said the board has sought discussions with the company’s largest shareholders – those who will hold approximately 60% of the company’s shares at the end of March 2020 – and is of the opinion that they “need to agree on a common path regarding the future capital structure and strategic direction of the group”, which must be implemented with new members of the board after the upcoming AGM.
