Failing to get anything from the Hill brothers at Globe
Helen Matterson
January 14, 2008
This Helen Matterson article appeared in The Age on Oct 30, 2003 after the AGM of struggling streetwear company Globe.
BROTHERS Peter and Stephen Hill have given assurances they are not about to sell out of the troubled skateboard and clothing group they founded, Globe International.
The Hill brothers own just under 60 per cent of Globe and amid profit downgrades, boardroom turmoil and US losses, there has been speculation the pair had been talking to suitors, including former Coles Myer director Solomon Lew.
But in a rare outing at yesterday's annual shareholder meeting in Melbourne, Peter Hill set the record straight to reporters.
``We are long-term shareholders,'' he said.
Before referring further questions to recently installed Globe chief executive Mike Sonand, he confirmed Globe would remain in both surf and skate products, despite the poorer performance of its skateboard sector.
``Our balance as a business is a surf and skateboard sports company and we'll be true to our heritage and our direction will be where the market takes us in the world.''
His comments followed several requests during the meeting from shareholder activist Stephen Mayne that the Hills address the predominantly young, casually dressed crowd, instead of continuing to remaining silent. But Globe chairman Paul Isherwood repeatedly said that the two directors would not speak.
The theme of the meeting was Globe's turnaround after suffering an $8.8 million loss due to a 6 per cent drop in sales and the $51.1 million writedown of its US skatewear acquisition, Kubic.
Mr Sonand said the company would return to profit in the half-year and there were indications that profits would increase in the second half. ``We have begun a comeback and we know how to sustain it.''
Investors applauded the news, pushing the stock up 21 per cent to 57c. The turnaround was due partly to slashing $20 million in annualised costs. More savings are tipped now the company's Chinese manufacturing plant, Chop Chop Wood Shop, is set to produce.
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