The Collection House Limited (ASX: CLH) share price is starting the week on a disappointing note.
In morning trade the receivable management company’s shares are down 6% to $1.14.
Why is the Collection House share price sinking lower?
Investors have been selling Collection House’s shares on Monday after it announced the sudden departure of its managing director and chief executive officer.
According to the release, Anthony Rivas has tendered his resignation, effective from November 24. This ends his three-and-a-half association with the company.
Judging by the share price reaction today, the market appears concerned by the news. Whilst a change of CEO often doesn’t go down well with investors, the sudden nature of this change seems to have spooked them.
New CEO appointed.
The company has acted swiftly to replace the outgoing Mr Rivas. It has revealed that its chief financial officer, Doug McAlpine, will take on the role of chief executive officer with immediate effect.
Collection House chairman, Leigh Berkley, spoke positively about the new chief executive and appears confident the company is in safe hands.
Mr Berkley said: “Doug has already made a strong contribution to the business, and I am sure that as CEO he will play a pivotal role in taking the company forward to providing even better outcomes for our people, our customers and clients, our shareholders, and the wider community.”
The company’s new CEO appears up for the challenge. Mr McAlpine said: “I’m delighted to be taking on this new challenge at Collection House and look forward to working with the Board and our exceptional Leadership Team to build on the important work that Anthony has already started. There is significant work to do, but with a focus on improving customer experience and creating a deeper level of engagement with our people, I am confident that we can become an even better business.”
Also falling heavily on Monday is the Nufarm Limited (ASX: NUF) share price after an accounting error and the Cann Group Ltd (ASX: CAN) share price on no news.
The post Why the Collection House share price is sinking lower today appeared first on Motley Fool Australia.
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