Boss of firm at centre of £28m legal battle opts to stick with business
The chief executive of wound and tape specialist Scapa has changed his mind about leaving the business.
Last month the Manchester firm said that chief executive Heejae Chae had decided to leave his post.
This morning the firm announced that Mr Chae has decided to retract his intention to step down and will remain as group chief executive.
The news comes as the company continues to take legal action to deal with the loss of a major contract.
Scapa is planning to take legal action against Convatec after it pulled out of the multi-million pound contract.
Scapa says it has taken steps to reduce the estimated impact on revenues and trading profit.
Following a reduction in direct labour the estimated exposure to revenue and trading profit in the next 12 months is expected to be £28m and £13m the following year.
The figure includes the impact on other facilities which supply materials for ConvaTec products in Knoxville.
The company said will continue to assess further revenue opportunities as well as reviewing its ongoing cost base.
A statement said: “The company and Scapa Tapes North America LLC refute that ConvaTec has any legitimate grounds to terminate the Master Supply Agreement (MSA) with Scapa Tapes North America LLC.
“Scapa will vigorously challenge and defend its rights under the MSA in its response to the New Jersey Action. Scapa is confident in asserting its rights and pursuing appropriate remedies.”
Chairman Larry Pentz said: “The board is delighted that Heejae has agreed to continue as group chief executive.
“The board remains committed to its strategy and believes it has the right capabilities and management to fully deliver its growth priorities and we will not be distracted by the recent claims published by ConvaTec, which we will robustly contest.”
Heejae Chae added: “I am pleased to have accepted the board’s invitation to remain as group chief executive.
“I am confident in the foundations of the company, which are strong. We have the right culture and excellent people in place to deliver against our current strategy, which is generating success.
“In particular, we have made significant strides in expanding our healthcare business and we are well positioned to take advantage of the many tech-transfer opportunities we are seeing in the medtech market. I remain fully committed to executing this strategy designed to create value for all stakeholders.”
