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Embattled etailer Surfstitch has announced it will hold an extraordinary to address the proposed removal of current director Sam Weiss.

Key shareholder Crown Financial, which is currently suing the company in a class action suit, has been the main driver behind this meeting, holding more than 5% of the company's votes.

Surfstitch's board have thrown their support behind Weiss 'strongly recommending' that remaining shareholders vote against the proposal to have him removed.

In a statement from the company the board said the loss of Weiss' would be detrimental to the continuation of the business in this tumultuous time.

"If Sam Weiss is removed as chairman and as director, the loss of his leadership would, in the opinion of the Board and management, have a disruptive effect on the company at a time when it faces considerable challenges."

The board also stated the following:

  • It rejects the assertions made by Crown Financial in regards Weiss' ability and current legal issues.
  • Weiss' experience in technology, retail, M&A and restructuring are all key skills the company need at this point in time.
  • The current financial state of the company pre-dates Weiss' tenure as chairman.
  • Weiss has made numerous changes to the board and company in the face of these challenges.
  • Surfstitch has now put in place a strategy to reduce costs while providing to cash flow to support the continued operation of the core business.
  • The company has also put measures in place to being developing a structured settlement proposal in relation to the current class action lawsuit.

The board also pointed out that the company has believes Crown Financial was involved in the alleged breaches of duties by former CEO Justin Cameron.

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