MELBOURNE: The hasty exit of John Cheston from Country Road has taken a new twist, with the former CEO commencing legal proceedings against the apparel business.
Cheston lodged proceedings in the Federal Court of Australia on Monday October 25 in relation to the cessation of his employment with the company, Country Road said in a statement.
The men's, women's and childrenswear retailer emphasised Cheston's claim would be “vigorously defended” in court.
“Our defence, which will respond to the claims and will deal with the reasons for the cessation of Mr Cheston's employment, will be filed with the Court in due course,” Country Road said.
“As the matter is now before the Federal Court, Country Road is not prepared to say anything further at this stage.”
Country Road chairman Simon Susman announced Cheston's departure from the company on September 15, citing “irreconcilable differences with the Board over the future direction of the company”. The announcement came less than three months after Cheston's assumption of the CEO role on July 1.
“The differences regarding the future path of the business were fundamental in nature and were not capable of resolution,” Susman said at the time.
“The situation is regrettable but the Board is unanimously of the view that this is the best course of action to maintain the momentum and future growth of the business.”
The statement reflected a wildly different opinion to that which Susman had volunteered in March 2010, upon announcing Cheston's acceptance of the CEO role.
“John Cheston has exceptional international retail and leadership experience and we are delighted to welcome him to the business. We are confident he will steer Country Road to a position of even greater strength and prominence,” Susman said.