Former chief executive returns as adviser to troubled Naked Wines

·1-min read
Naked Wines uses an online subscription model (Andrew Matthews/PA) (PA Archive)
Naked Wines uses an online subscription model (Andrew Matthews/PA) (PA Archive)

Troubled subscription service Naked Wines has brought its old chief executive back as an adviser just days after a representative for one of its biggest shareholders left the board.

The business said Rowan Gormley, who still owns a 2.9% stake in Naked Wines, will take on an unpaid role as “adviser to the board” as it tries to set out a new strategy.

He will take on the role for between two and three months, bosses said on Friday.

Chairman Darryl Rawlings said: “We wanted shareholder involvement in our ongoing operational and financial planning process.

“I welcome Rowan providing his insight to us because his operational familiarity with the business and his viewpoint as a shareholder will provide a unique and valuable perspective to the board as we position Naked for long-term sustainable growth.”

He left the business in 2019 after the decision to move it into an online-based subscription model. It was a decision that proved useful during the pandemic, and shares soared as people were stuck at home.

The announcement comes two days after Naked said Pratham Ravi had left its board.

Mr Ravi is an analyst with Florida-based investor Punch Card Capital, one of Naked Wines’ largest shareholders with a stake of approximately 10%.

He had joined the board less than three weeks earlier.

The business also said it was reviewing its plans for the next 18 months, sending shares plunging. Investors reacted better on Friday, sending shares up by 4%.

“The company will announce these revised plans during the week commencing October 17,” Naked said on Friday.