SYDNEY: Photon Group founder Tim Hughes is to stand down as executive chairman and become a non-executive director, in tandem with a raft of other changes at the troubled group, AdNews can reveal.
The move will be officially announced this afternoon, along with three new members of the board. The company is also expected to release a keenly awaited trading update, with other changes expected to include a revised set of accounts, a profit downgrade, writedowns, a corporate restructure and redundancies.
Hughes' departure comes amid Photon's voluntary suspension of trading on the Australian Securities Exchange as it sets about raising extra funding to balance a significant debt facility.
The recapitalisation of the group, which owns 50 companies in Australia and overseas including ad agencies BMF, BWM and comms planning group Naked, was due last week but has been delayed as the company is “still working through the process”, a spokesman told AdNews previously.
The spokesman would not be drawn on whether Photon is planning to make job losses or initiate closures as Jeremy Phillips, the newly installed chief executive, overhauls the company's capital and management structures.
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