Shareholder requests removal of Surfstitch chairman

surfstitchTroubled sports and surfwear e-tailer has acknowledged it has received the request of a major shareholder for the removal of chairman Sam Weiss and has called for an extraordinary general meeting to vote for a decision.

Crown Financial, which has a more than a five per cent stake in Surfstitch, has sent the company a notice of requisition to hold the shareholder meeting.

Crown Financial, which has taken legal action against Surfstitch related to a fallout over a content sharing deal, wants Weiss removed as a director of Surfstitch.

The company said it will make further announcements in relation to this matter in due course.

Shares of the embattled online sports and surfwear retailer have recently been suspended for at least three months after the e-tailer was hit by a $100 million shareholder class action.

Surfstitch said it expects the suspension to last until its full-year results at the end of August, and that it will end with an agreed settlement of the claim or Surfstitch concluding a settlement is unworkable or undesirable.

Law firm Quinn Emanuel, last month, filed an action in Queensland’s Supreme Court alleging SurfStitch failed to tell shareholders it was trading at a loss and then tried to cover it up.

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