Naked Wines lures back former chief to advise board

Naked Wines is to recall its founder and former chief executive to an advisory role on the board as the ecommerce business said it was finalising revised plans for its strategy.

Rowan Gormley owns nearly 3 per cent of the group’s issued share capital. The position of board adviser is unpaid and is expected to last no more than three months.

Naked Wines will reveal its “revised plans” during the week of October 17, it said in a statement on Friday.

Gormley shocked investors in November 2019 when he announced his retirement, months after agreeing to transform the business into an online subscription-based retailer. Nick Devlin took over from him.

Naked is among those ecommerce businesses that are feeling the pinch from inflation, especially the rising cost of marketing.

The group revealed a potential shift in strategy this week, prompting its shares to fall almost two-fifths on Wednesday. The shares have shed 86 per cent in London trading this year.

“We wanted shareholder involvement in our ongoing operational and financial planning process,” said chair Darryl Rawlings in Friday’s statement.

Gormley’s “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”, Rawlings added.