Wessanen, the Dutch food group, has announced its intention to dissolve the contract of its ex-CEO Ad Veenhof.
The company’s supervisory board said today (29 July) it will ask the court to dissolve the employment agreement for Veenhof, who resigned as CEO on 24 February following strategic differences with the company.
The decision to start a court procedure to dissolve the contract rests with the general shareholders’ meeting.
Wessanen said it will call a meeting on 8 September, during which the shareholders will be asked to decide whether to have Veenhof’s contract legally dissolved.
Prior to the meeting, Wessanen said it will publish a memorandum on its website giving reasons for the dissolution ofVeenhof’s contract.
Earlier today, Wessanen posted a significant second-quarter operating loss, hit by impairment charges at its US beverage unit.
Losses totalled EUR 5.4m (US$7.6m), which Wessanen blamed on financial irregularities found at its North American drinks unit American Beverage Corp. (ABC).
Struggling with heavy debts, the company was earlier this year planning to sell its North American operations to shift its focus back to Europe. The company said this review has now been put on hold.
A possible sale of the company’s Tree of Life division in the US is progressing, however, and has not been affected by events at ABC, Wessanen said.
