The board expressed “its appreciation for the significant contribution Chris has made, both in managing the business during an extremely difficult period and in formulating a new strategic direction for Blue Star“.
Mitchell will leave on 11 November 2011, to be replaced by acting chief executive Graeme Archer, who will step up from his role as chief financial officer.
The top-level reshuffle comes at the end of a difficult time for the group, which narrowly pushed through a significant debt restructure only last month.
Mitchell told ProPrint this morning: “The refinancing we recently completed gives the runway to fully implement our strategy of innovation and having a stronger business in a difficult market.
“It was – for me and my family – a very tough process, and after securing the new financial package and with time for reflection, it is time for me to move on.”
He said he had chalked up a series of wins at the company under difficult circumstances, including increasing capital equipment investment from $8m in 2010 to $20m in 2011, with an approved budget of over $30m for additional investment in 2012.
He also nodded toward Blue Star’s ACP contract and government hub deal in New Zealand, its investment in HP inkjet webs in Australia and the roll-out of the Agile strategy.
Key to its debt restructure was a promise to bondholders that Blue Star will generate a 26.5% lift in earnings in the 2012 financial year, although earnings fell 8% in its 2010/11 results announced last month.
Industry insiders told ProPrint that Mitchell had been under intense pressure.
“What has unfolded has been on the radar for him for a year,” said one.
Another source told ProPrint: “Certain forecasts were made as part of the bondholder deal and my understanding is the results were significantly off the mark and the pressure was too much. To be fair to the bloke, when he took the job on, did he get a true and accurate briefing? I don’t think so.”
Speculation has now turned to Mitchell’s successor. One source suggested Archer would make a good long-term replacement, bringing to mind the success of another CFO turned CEO, Richard Allely, who has rung in major changes at PMP.
Other names in the frame include Blue Star’s New Zealand chief executive, David Jupe, while Blue Star IQ’s Matt Aitken was suggested as a possible fit for the Australian business.
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