JSE-listed Core Holdings remains mum over management walkouts at its subsidiary and Comdex SA organiser International Fairs and Exhibitions (IFE).
According to IFE MD Wolfgang Striebeck, he and other staff members have severed ties with the parent company in what he describes as "disappointment with the group`s various management decisions". He says he has instituted legal action against Core Holdings.
Core management, however, remains tight-lipped over the dispute with none of the Core directors available for comment.
Core CEO Mark Floisand`s voice mail says only that he is on holiday and will be relocating to the UK. All further queries are redirected to COO Katherine Fielding at the head office number. However, all attempts to contact her proved fruitless.
An IFE employee who has remained on at Core says the board has not made a final decision as to who will head up the subsidiary and says the dispute is now with Core`s lawyers. The employee adds that a SENS announcement could be expected soon.
IFE, which is 100% owned by Core Holdings, is responsible for Comdex SA which is to take place later this year. Striebeck says he is not sure whether the walkout will affect the event.
Core blamed its less than sterling interim results released in January in part on its exposure to IFE. It also cited the liquidation of Redsand Interactive as a reason for its headline loss for the period.
Although Core grew its turnover from R7.5 million to R12.7 million for the comparable six months, the company reported an operating loss of R3.5 million.
The company`s share price was trading at 10c at the time of its results, but is now at 2c, giving it a price-to-earnings ratio of -0.81.
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