The 47m turnover supplier announced late last Friday (13 August), that joint managing directors Gerry Mulvaney and Terry Cooper, who have both been with Litho for more than 20 years, were to leave the company.
Mulvaney, very much the public face of the business, left with immediate effect. He has a service contract that expires in October. Cooper has a 12-month notice period and his departure is being negotiated.
Chief executive Mike Hammond, who is due to retire this time next year, said he was "saddened" at the situation: "Gerry put forward a proposal on his thoughts for the business for the next five years. He thought it was appropriate but he may have been a bit premature in his timing, and it didn't get board support. It left him no alternative but to resign.
"Nobody is bigger than the company. We've got a very good and very strong sales team and people there able to pick up the challenges. It's business as usual," he added.
The group's share price fell 17% to 38.5p on Monday, but had recovered to 41p as PrintWeek went to press.
Mulvaney said he had taken the decision "with great regret" and issued a personal statement thanking colleagues, customers and suppliers. The full text can be found in our earlier story here.
He is now effectively unemployed and is looking for a new role. "My wife doesn't want me under her feet so if anybody out there wants a salesman let me know," he added.
Hammond said his immediate priority had been to ensure the support of the firm's two sales directors, Eddie Williams and Steve Dodds. "I saw them both and they assured me they would. It would have been a great shame if this had escalated."
He is planning to address the absence of a sales presence on the remaining board, and is likely to appoint a sales director.
Industry reaction
"I'm flabbergasted. But my view on all these things is: we deal with the company. Litho Supplies remains our biggest dealer" Laurence Roberts, Agfa
"It's an absolute surprise. Gerry was always an impressive operator. Trustworthy and customer focused" Keith Dalton, Fuji
"It's an incredible situation that he felt he needed to do that. Gerry always said 'don't go into a battle unless you know you're going to win' " Litho Supplies employee
"I keep saying this industry won't shock me, and then it does" Brian Filler, Screen
"I'm absolutely amazed. If I were to put a bet on anybody being in the same job until they retired it would be Gerry" Peter Flynn, HighWater
"If you read the report and accounts he [Mulvaney] hadn't renewed his contract and it expired on 27 October. I think this has been brewing for some time" Tony Halker, Openshaw
Story by PrintWeek staff
