The Good Guys will undergo a major leadership change, with the chief executive to be replaced by “one of Australia’s best retail executives”.
Michael Ford has resigned as chief executive of The Good Guys after 13 years in the role.
His replacement will be Terry Smart, who was chief executive of The Good Guys’ parent company, JB Hi-Fi, from 2010 to 2014. Before that, he spent 10 years as the company's chief operating officer.
Smart will report to JB Hi-Fi group chief executive Richard Murray. He will rejoin the group on 18 April, while Ford will leave on 28 April.
Ford’s resignation comes seven months after he oversaw the sale of The Good Guys to JB Hi-Fi for $870 million.
Murray said Ford had made a “huge contribution” to The Good Guys, “particularly during a period of significant change for the business over the past 18 months”.
Murray also said that he was delighted to reunite with Smart.
“Terry has a proven track record as one of Australia’s best retail executives and we look forward to him building on The Good Guys’ previous success,” he said.
Ford said resigning from The Good Guys had been a difficult decision.
“Having been with the business since 2004, and most recently navigated the business through the buy-out of the joint venture partners, the potential listing and the sale process to JB Hi-Fi, I believe this is the right time for me to seek new challenges and for the business to move forward under new leadership,” he said.
Meanwhile, the group has reported improved trading results for the March quarter.
The Good Guys business posted year-on-year growth of 1.2 percent in comparable sales and 2.6 percent in total sales.
The JB Hi-Fi business enjoyed growth of 8.2 percent in comparable sales and 10.8 percent in total sales.
The group also confirmed guidance from February, which forecast sales for this financial year of $5.58 billion - $1.25 billion for The Good Guys and $4.33 billion for JB Hi-Fi.
Underlying net profit after tax is forecast to be in the range of $200 million to $206 million, which would represent an increase of 31.4 percent to 35.4 percent.