Naked Wines chairman steps down as it moves to new plan
Naked Wines chairman Darryl Rawlings has stepped down as the company moves to implement a new operating and financial plan to “deliver profitability at a sustainable level”.
Rawlings will be succeeded by David Stead who has served as a director of Naked Wines since 2017 and is currently chair of its audit committee.
Nick Devlin, chief executive of Naked Wines, said: “As the founder and CEO of a direct to consumer, monthly subscription platform, Darryl has been a tremendous asset to us over the past twelve months. His focus on the fundamentals and unit economics have been helpful to us as we seek to create long-term sustainable value for our members, winemakers, team and shareholders.
“I’d also like to welcome David to the role of chairman. David brings a deep understanding of the Naked Wines model combined with extensive operating experience and I believe he will be a great asset to myself and the management team in navigating Naked successfully through the current market and consumer environment.”
The company has cut its full year guidance and admitted mistakes were made in the pursuit of growth. It has also restructured some teams as part of plans to create a “leaner and more focussed” organisation.
Devlin said: “We recognise that in pursuit of rapid growth we have made mistakes. Whilst the business today remains materially bigger than pre-pandemic, in 2021 we bought inventory and added to our cost base in anticipation of sustained faster growth which has not been delivered; today we are taking steps to reset our cost base and unwind inventory levels.
“We commit to not only resolve these challenges but also to ensure they are not repeated. While the operating environment remains challenging, with low consumer confidence and high levels of supply chain inflation, we have taken steps to reconfigure Naked appropriately.”