Country Road has settled its legal dispute with former CEO John Cheston for the tidy sum of $1.1 million.
Five months on from when Cheston commenced legal proceedings against the men's, women's and childrenswear retailer in the Federal Court of Australia in relation to the cessation of his employment, Country Road announced the proceedings have been discontinued.
“Country Road is to pay $1,100,000 to Mr Cheston. The successful resolution of the case occurred at mediation and enables the parties to focus on their respective futures in the Australian fashion industry,” Country Road said in a statement.
Country Road chairman Simon Susman announced Cheston's departure from the company on September 15, 2010, 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.”