Group Five CEO Calls It Quits, No Replacement Plans In Sight
Construction and engineering giant Group Five’s interim CEO Dr. Thabo Kgogo has called it quits to pursue an “alternative career opportunity”.
The company which is currently in business rescue has made known the resignation of Kgogo in a statement sent to shareholders.
Group Five Limited (G5 Limited) and its operating subsidiary Group Five Construction (G5 Construction), in March, entered into business rescue following significant financial losses.
In the statement sent to shareholders on Tuesday, the group’s board and it’s business rescue practitioners announced that Dr. Thabo Kgogo would leave on October 30.
The company’s board and business rescue team expressed their gratitude to the outgoing CEO for his contribution to the company.
The JSE-listed company appointed nonexecutive director Dr. Thabo Kgogo as interim CEO effective February 1, a month before the company was placed under business rescue following creditor’s overwhelming votes in favor of the rescue plan.
“Subsequent to the approval of the business rescue plan for the company on September 11, the rescue team is now implementing the approved plan. In the circumstances, the business rescue practitioners do not at this time foresee the appointment of a replacement CEO,” Group Five said.
According to a document released in September, Group Five plans to execute the business rescue in two phases and it is anticipated that the plan will save 3 000 to 3 500 jobs.
Inside the rescue plan, some subsidiaries will be disposed off, restructuring will be done as well as a lot of cost-cutting.
Even though some jobs will be saved, the document indicated that some retrenchments will be done given the company’s financial challenges.
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