SurfStitch co-founder and CEO Justin Cameron has just resigned by email.
The successful online retailer of surf and skateboard clothing says it understands Cameron is pursuing a potential acquisition of the business in conjunction with private equity.
“The company stresses that it has not, to date, received any formal or informal proposal from, nor has it had any discussions with, private equity in relation to any potential acquisition,” Surfstitch said in a statement.
The Surfstitch shares have been see-sawing lately after the company backed away from its full guidance. Yesterday the shares were up 9.6% to $1.185 but were as low as 99 cents last month.
Today the shares jumped 15% to $1.37 in early trade.
Cameron tendered his resignation during his initial fixed two year appointment period and before his employment contract permits.
The chairman, Howard McDonald is now monitoring the activities and day to day operations of the company.
SurfStitch has engaged UBS to act as its financial adviser and Herbert Smith Freehills to act as its legal adviser.
The company was formed by Cameron and Lex Pedersen eight years ago. Pedersen ran Surfection, the surfwear shops, and Cameron was an investment banker and research analyst at Credit Suisse.
SurfStitch has turnover of turnover of $200 million.
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