The Warehouse Group CEO Nick Grayston has stepped down, effective immediately, citing that the company “needs fresh energy” as it changes direction.

His departure follows a significant fall in quarterly sales, the closure of the group’s online marketplace, and the sale of its outdoor retail chain Torpedo 7 for just $1.

“Since 2016, Nick has led TWG through a period of significant change in the retail industry, and I want to thank him for his commitment and contribution,” said Joan Withers, The Warehouse Group chair.

“His focus on sustainability, adopting agile ways of working, navigating the challenges of Covid, and initiating the significant and successful program of critical infrastructure upgrades have been hallmarks of the transformation of The Warehouse Group in the last five years.”

The company has named John Journee as interim CEO until a new CEO is identified.

Upon taking the new role, Journee will step down from the independent director position but will continue as an executive director.

“Our team members, customers, shareholders and all Kiwi families are our inspiration and motivation as we focus on improving the performance of the core business. This transition marks a new chapter for TWG as we address our current challenges and seize the opportunities that lie ahead,” said Withers.

Earlier, the company confirmed it would shut down TheMarket.com by late June. The confirmation came as the company reported its fiscal third-quarter sales fell 9.2 per cent year over year to $695.5 million.