Le Saunda pins hope on new chairman

Former Giordano International executive director Jimmy Chan Kui-tim has joined Le Saunda Holdings as chairman in a management revamp aimed at turning around the loss-making shoe retailer.

The revamp will see majority shareholder Lee Keung relinquish the chairmanship to make way for Mr Chan.

Two executive directors - Doris Tsui Oi-kuen and Winnie Lui Miu-lan - will resign after spending 23 years and 12 years respectively with the company.

It is understood Mr Lee is pinning his hopes of a turnaround on independence of management. It is also believed he wants to have Giordano's management and business models imported into Le Saunda, particularly at a time when Hong Kong's retail sector is reeling from sinking consumer confidence and deepening deflation.

Giordano, a dominant casual wear retailer in the region, is among a minority of listed companies with a shareholders' 'hands-off' approach to management.

The group is held largely by a number of institutional investors such as Harris Associates. Its chairman and directors, who are employees and collectively own less than 1 per cent of the company, take charge of daily management.