W. Graeme Roustan, Trustee of the Walter Graeme Roustan Trust, has requested the Board of Directors of Performance Sports Group Ltd. perform its primary fiduciary duty to the company and immediately replace Kevin Davis, the current CEO.
Mr. Roustan believes that Mr. Davis has personally lost the trust of many representatives of major retailers in Canada and the USA as he learned from survey results delivered to the Board on December 24th, 2015.
Mr. Davis's abrupt company strategy shift as announced on January 8th, 2015 to open retail stores, included the admission that the company will suffer financial losses at each store for up to two years, has also had a negative effect on the relationship with some retailers and a strategy that goes back to the beginning of the Bauer story in 1927.
The poor performance of the company's stock since the January 8th, 2015 announcement alone is also cause for Mr. Davis's removal and replacement. The current President of the company, Amir Rosenthal, is more than qualified to assume the additional responsibilities of the CEO and this change would send the message out to the retailers that there is a new beginning at Performance Sports Group.
Walter Graeme Roustan Trust was established in 2011 as an estate planning vehicle for some of Mr. Roustan's holdings of which he serves as sole Trustee. The Trust is a significant shareholder of Performance Sports Group Ltd. stock and stated prior to the 2015 Annual General Meeting that it held approximately 1.39% of the company's shares.
Roustan Capital (roustan.com) is owned 100% by W. Graeme Roustan who serves as its Chairman and CEO. Roustan Capital selected a private equity partner in 2007 and Mr. Roustan led the effort to win the Nike sale process to acquire Nike Bauer in 2008. It then leveraged Mr. Roustan's industry relationships to enable Bauer to acquire Mission Itech, also in 2008.