A management restructure and boardroom fallout at B Digital has culminated in the departure from the company of managing director Sean Gentry.
A management restructure and boardroom fallout at B Digital has culminated in the departure from the company of managing director Sean Gentry.
Despite the upheaval, B Digital has been quick to reassure local staff and suppliers that it’s business as usual for the Perth-based company.
B Digital last week announced its intention to centralise its key corporate functions to the eastern seaboard to reduce overhead costs and eliminate duplication.
The move follows the merger between B Digital and NSW-based Digiplus Pty Ltd earlier this year.
This management reshuffle resulted in the resignations of chief operating officer Timothy Levy, chief financial officer Paul Evans, and business development manager Scott Cuomo.
Existing Sydney-based Digiplus executives Karen Langtry (operations), Jenny Hartley (finance), and Shai Luft (sales and marketing) will now have their responsibilities extended to cover the entire B Digital group.
When contacted, Mr Gentry referred WA Business News to an announcement by B Digital to the Australian Stock Exchange advising that: “Due to a difference of opinion with the board regarding the company’s strategy, B Digital and its managing director Mr Sean Gentry have agreed that he will leave his position with the company effective immediately”.
He said he could not discuss speculation that remuneration issues also contributed to the management fall-out.
Mr Levy confirmed there were some disagreements within management but refused to disclose any further detail, citing a confidentiality agreement.
Mr Levy said he, along with the former B Digital management staff, left the company collectively “to pursue an opportunity which we felt is right for us”.
“We are working on a number of things,” he said.
Mr Gentry was a founding director and significant shareholder in B Digital and was instrumental in developing the company and B Digital brand.
Despite the changes, B Digital general manager Stephen Mitchinson, who held the position of customer relationship manager before the reshuffle, said it was “business as usual” for the company.
“The B business will remain in Perth,” he said. “In fact, we are currently negotiating a long-term lease in some larger premises to accommodate some future growth.
Mr Mitchinson said the lease negotiations were for 3,000 square metres in a central city location.
While refusing to provide detail of recent boardroom events, Mr Mitchinson was philosophical about the management restructure.
“When you bring two different businesses together, there is bound to be some difference of opinion,” he said.
Mr Mitchinson said the company had reassured local suppliers and staff there would be no changes to the operation, other than that some managers would now submit their monthly reports to the Sydney office.
“As soon as the ASX announcement was made, we told our staff [about the management restructure] and we told them it was business as usual,” he told WA Business News.
“From an operational point of view there have been no changes and there will be no changes other than that we will report to Sydney on a monthly basis.”
Mr Mitchinson said Perth’s 450 staff would be retained, including 250 call centre staff, eight senior managers and 12 operational managers.
Digiplus will also retain its 40-seat call centre in Sydney.
B Digital listed on the ASX in February 1999 and targeted the residential mobile market, before acquiring fixed line telephony and Internet provider Digiplus earlier this year.
Mr Gentry is to be replaced in the interim by current non-executive director Peter George, who will be paid $40,000 a month.
B Digital shares fell slightly from 2.9 per cent to 33.5 cents a share after news of the management reshuffle, but were up on Tuesday – trading at 35 cents.
