By Andrew Starke

The Compass Hotel Group has appointed caretaker directors but remains suspended from the Australian Stock Exchange (ASX). 

The Western Australia pub owner has been unable to form a quorum since it shed its CEO, managing director, chairman and an independent director in July.

In a statement to the ASX, Compass director, Roland Hill said: “Given the fact that the Company only had one director and was unable to form a board with a quorum, the Responsible Entity has terminated the Advisory Services Agreement pursuant to which the Company acted as a manager for the Trust.”

Two members of the board, chairperson Anne Thoume and MD Robert Garton Smith, have become directors of the company, with continuing director Hill appointed chairperson.

“The two new directors see themselves as caretaker directors … with a view to achieving certain short term goals, namely to finalise the financial statements, to develop a workable plan for the future, to stabilise relationships with the group’s bank, and to secure a new board, experienced in hotel management with the aim of restoring shareholder value,” said Hill.

The embattled group, one of the largest freehold-owned and operated hotel and tavern portfolios in Western Australia, floated on the Australian Stock Exchange (ASX) in 2007.

It announced an operating loss of $2 million for the six months ended December 28 as a result of double-digit decreases in revenue from its food and liquor operations.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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