The chief executive of Best & Less, Aaron Faraguna, has resigned after just nine months in the role, marking the second premature departure of a CEO from the budget retailer. The company confirmed Faraguna’s exit after inquiries from this publication, highlighting ongoing leadership challenges at the firm.
Faraguna, who previously served as chief executive at JD Sports and chief operating officer at David Jones, was appointed to lead Best & Less in January. His departure was announced in a company statement, which noted, “Aaron Faraguna recently tendered his resignation as chief executive officer of Best & Less.” Ray Itaoui, the executive chairman, has assumed day-to-day responsibilities to ensure business continuity.
Despite his resignation, Faraguna will remain available to facilitate a smooth transition. His appointment was initially celebrated on LinkedIn, where he expressed gratitude to Itaoui for the opportunity to lead the company.
Background and Leadership Challenges
Founded in 1965, Best & Less operates over 200 stores across Australia. The retailer is co-owned by Itaoui and billionaire businessman Brett Blundy. Itaoui, who has a history with Faraguna dating back to his early retail days at Sanity in 1999, had previously described Faraguna as possessing the energy needed for the role.
This leadership change follows a tumultuous period for Best & Less. In April 2023, the company announced Erica Berchtold, former CEO of The Iconic, would join as the incoming chief executive. However, by May, Itaoui and Blundy initiated a takeover bid, leading to Berchtold’s appointment being canceled by June.
Corporate Restructuring and Financial Performance
In July 2023, Best & Less was delisted from the ASX, privatizing the company two years after it had gone public. Berchtold, speaking on a podcast, expressed disappointment that the role she had signed up for was no longer available due to the company’s buyout and restructuring.
Despite these leadership changes, Best & Less reported a mixed financial performance. In the 12 months ending June 30, 2024, sales declined by 2.2% to $625.1 million. However, net profits nearly doubled to $17.5 million from $9.1 million the previous year, according to the company’s latest financial report.
In the 12 months to June 30, 2024, sales declined 2.2% to $625.1 million, but net profits nearly doubled to $17.5 million from $9.1 million in 2023.
Implications and Future Prospects
The departure of Faraguna and the earlier withdrawal of Berchtold’s appointment raise questions about the strategic direction and stability of Best & Less. With Itaoui at the helm, the company must navigate these leadership changes while maintaining operational stability and pursuing growth in a competitive retail market.
Experts suggest that the frequent leadership changes could impact employee morale and investor confidence. However, the company’s improved profitability indicates potential resilience and adaptability amid these challenges.
As Best & Less moves forward, stakeholders will closely watch how Itaoui and Blundy steer the company through its next chapter. The focus will likely be on strengthening the brand’s market position and exploring new growth opportunities in the evolving retail landscape.
A spokesperson for Best & Less declined to provide further comments, and Itaoui was unavailable for an interview. The company’s next steps will be crucial in determining its future trajectory in the retail sector.
