KLE Group Limited (KLE) has temporarily restructured its operations, eliminating the cost of a chief executive officer until the company returns to stability. Top management in the interim will be overseen by two new board committees.
The company advised that at their Board meeting held on November 6, the decision was made to restructure management “in order to adjust the cost side of the business to better align with the new revenue realities facing the Company, particularly as a result of the coronavirus pandemic’s impact on their business.”
The new structure will entail the implementation of two separate sub-committees of the Board with responsibility for overseeing the operations of the Restaurant Division and another for the Real Estate Division.
The Restaurant Division Sub-Committee will be chaired by Gary Matalon, other members include directors David Shirley, Norman Peart, Joe Bogdanovich and Marlon Hill.
The Real Estate Division Sub-Committee will be chaired by David Shirley, other members include directors Matalon, Zuar Jarrett, Stephen Shirley and Bogdanovich.
Matalon, who was previously CEO, will continue to oversee franchise opportunities and other opportunities for growth, it was noted.
The changes will become effective November 23, 2020, and “will allow the company to alleviate the burden of the executive costs of a CEO until the external environment stabilises and more reasonable predictions can be made on the way forward,” it was stated.
The notice from the Board said that the newly implemented structure is subject to revision in the coming months for appropriateness as things evolved.
The company reported net losses of $20.9 million for the quarter ended September 30, 2020, an increase over losses of $3.3 million for the similar period in 2019. For the nine month period ended September 30, 2020, accumulated losses were $65.1 million compared to losses of $2.7 million in September 2019.
Third quarter revenue was $ 27.4 million, a decrease from $52 million in September 2019, for the nine months ended September, total revenue was $107.85 million, down from $210.17 million in revenue posted in September 2019.
KLE started restructuring its senior management team, at mid-year 2020, noting that changes made will have “a positive impact on the financial performance of the business in Q3 without jeopardising the operating standards we have worked so hard to build.”