Bubs Australia Resolves Legal Dispute with Founder and Ex-Chair
Source: The DairyNews
Infant formula and baby food manufacturer Bubs Australia has successfully settled a legal dispute with its founder and former CEO, Kristy Carr, and ex-chairman Dennis Lin.
The resolution, disclosed in the company's half-year results commentary on February 26, indicates the mutual discontinuation of legal proceedings in the Federal Court of Australia.
The statement from Bubs Australia reads, "The statement commenced by Ms Carr and Mr Lin against Bubs, Katrina Rathie, Steve Lin, Paul Jensen, and Reg Weine, and the crossclaim commenced by Bubs against Ms Carr and Mr Dennis Lin have been (mutually) discontinued on confidential terms with no orders as to costs."
The public dispute first surfaced in May 2023 when Bubs announced the departure of CEO Kristy Carr, who had founded the company in 2005, following a strategic review. In the months leading up to Carr's exit, Bubs reported a significant EBITDA loss of AUD 42 million, compared to the previous year's profit of AUD 1.2 million.
Carr's removal was attributed to her alleged failure to comply with reasonable board directions, leading to a leadership change and adjustments to the governance framework to align with Australian Securities Exchange Corporate Governance Principles and best practices.
Following Carr's departure, attempts were made by Carr and Lin, along with departing CFO Iris Ren, to regain control of the board in July 2023, but these efforts were unsuccessful. Subsequent leadership changes saw Katrina Rathie assuming the role of chair, and Richard Paine, the then COO, stepping in as interim CEO. Reg Weine, a former non-executive director and board member, took over as CEO in August 2023.
Bubs Australia's latest financial results for the six months ending December 31, 2023, reveal a 25% year-over-year increase in revenue to AUD 39.4 million, with the net loss decreasing from AUD 44.4 million to AUD 7.7 million during the same period. The successful resolution of the legal dispute marks a significant development for the company as it continues its operations and strives for stability in its leadership and governance.
The statement from Bubs Australia reads, "The statement commenced by Ms Carr and Mr Lin against Bubs, Katrina Rathie, Steve Lin, Paul Jensen, and Reg Weine, and the crossclaim commenced by Bubs against Ms Carr and Mr Dennis Lin have been (mutually) discontinued on confidential terms with no orders as to costs."
The public dispute first surfaced in May 2023 when Bubs announced the departure of CEO Kristy Carr, who had founded the company in 2005, following a strategic review. In the months leading up to Carr's exit, Bubs reported a significant EBITDA loss of AUD 42 million, compared to the previous year's profit of AUD 1.2 million.
Carr's removal was attributed to her alleged failure to comply with reasonable board directions, leading to a leadership change and adjustments to the governance framework to align with Australian Securities Exchange Corporate Governance Principles and best practices.
Following Carr's departure, attempts were made by Carr and Lin, along with departing CFO Iris Ren, to regain control of the board in July 2023, but these efforts were unsuccessful. Subsequent leadership changes saw Katrina Rathie assuming the role of chair, and Richard Paine, the then COO, stepping in as interim CEO. Reg Weine, a former non-executive director and board member, took over as CEO in August 2023.
Bubs Australia's latest financial results for the six months ending December 31, 2023, reveal a 25% year-over-year increase in revenue to AUD 39.4 million, with the net loss decreasing from AUD 44.4 million to AUD 7.7 million during the same period. The successful resolution of the legal dispute marks a significant development for the company as it continues its operations and strives for stability in its leadership and governance.
