C&C Group boss quits after botched software rollout costs £22m
Beer and cider business C&C Group is facing a £22m hit after it encountered problems when implementing a new business management system at one of its UK subsidiaries.
The Irish company, whose brands include Bulmers, Magners and Tennent's, said that it had "encountered significant challenges" implementing the new system at Matthew Clark and Bibendum, a UK drinks distributor.
The group released a statement to the London Stock Exchange this morning, which stated: "C&C Group plc … announces that it has encountered significant challenges, in terms of time, cost and customer service, in the implementation of a complex enterprise resource planning system upgrade in the Matthew Clark and Bibendum businesses in Great Britain."
It said that the implementation had taken longer and been much more challenging and disruptive than originally thought and this had affected service levels and profitability at the business. It added that it is working on fixing the problems.
The Irish company said that it expects to take a €25m hit, equating to around £22m, due to the disruption.
The statement also announced that David Forde, C&C Group's chief executive officer, will step down today and, in the interim, be replaced by the company's chief financial officer, Patrick McMahon, until a replacement is found.
Chair Ralph Findlay has been appointed as executive chair to support this transition.
Findlay said: "David has informed the board that he believes that now is the right time for him to step down as chief executive and to allow the business to go forward under new leadership.
"The board recognises and thanks David for his contribution to the group throughout a challenging period for our industry.
Forde, who took was appointed chief executive in 2020, said: "It has been a privilege to lead such a great business as C&C.
"I am grateful to all C&C colleagues for their dedication, resilience and commitment in recent years.
"I wish the group all the best for the future under Ralph's and Paddy's strong leadership."
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