Bremworth CEO agrees to step down weeks after board coup

Thursday, 10 April 2025

Bremworth CEO Greg Smith left with the respect of the new board, even though they agreed he should step down.

Just weeks after a board coup at listed carpet manufacturer Bremworth, chief executive of four years Greg Smith has announced his resignation.

Rob Hewett, who led the shareholder move against the previous board and is now chairman of the new board, said Smith’s stepping back was a “mutually agreed decision”.

“He’s done a good job of a number of things at the company … but [it’s] is still haemorrhaging [cash], so the shareholders have spoken,” he said.

“So we sat down for chat and we came to a mutual conclusion … but I’ve got a lot of respect for the guy ‒ I think he’s done a great job and it’s been bloody tough.”

Newly appointed Bremworth Board chair Rob Hewett said the decision for Smith to step down had been mutually agreed.

Former Icebreaker chief executive Smith joined Bremworth in 2021 and led its natural fibre strategy, which saw the company align itself with New Zealand’s farming sector by moving to the production of wool carpets and rugs.

Smith also introduced 10-year strong wool contracts, spearheaded sustainability initiatives, expanded Bremworth’s direct-to-consumer ecommerce business and successfully negotiated a $100 million insurance settlement following the country’s costliest non-earthquake natural disaster, Cyclone Gabrielle.

He was overseeing Bremworth’s second strategic view and reportedly had buyers interested in the company when a group of shareholders, including descendants of the original founders of Cavalier Bremworth, gained control of the board, saying there had been “years of poor operational performance, erratic strategic direction and substandard execution under the stewardship” of the company’s board.

Bremworth’s most recent half-year result showed a declining cash position, stagnant sales, and an increased loss after tax of $8.1m. It also revealed further deterioration in revenue to $80.3m, which had nearly halved from the $148.1m it was in the 2018 financial year.

Originally, Hewett and his associates had not pinned the blame on Smith for the performance of the company. Hewett told The Post at the time, “assuming we are successful with [replacing the board] we’re going to review the entire business and, of course, Greg's going to be part of that.

“Right now I can’t comment on that because I don’t want to presuppose any outcome,” he had said.

Smith did not respond to requests for comment, but said in a statement he had been privileged to lead the iconic Kiwi brand during a pivotal period in its 60-year history.

Greg Smith had led Bremworth’s move to a 100% wool carpet strategy, which was seen as somewhat risky at the time it was introduced.

“Bremworth’s culture is built on talented craftspeople who are true experts in their fields. I’ve been continually inspired by the team’s dedication to creating the best products, which is the hallmark of this business.

“With a new Board focused on sustained growth, I’m confident Bremworth is poised to realise its full potential. I’m also looking forward to the next chapter in my career,” he said.

What happens now

Hewett could not say whether Bremworth was talking to buyers, although it seemed that could be happening.

The chairman said “we’re in a process” and was constrained about saying any more.

In the meantime, the board has put an interim chief executive in place, Craig Woolford.

Government agencies to use woollen fibre products in construction and refurbishment of buildings.

“Craig’s got a heap of experience in manufacturing and sales of carpet ‒ he’s worked at Bremworth previously, as well as running the North American market for competitor Godfrey Hirst, so he will be in the business as of Monday, and he’s been advising the board for the last three weeks,” Hewett said.

“Craig’s very much across what’s going on and we have a lot of confidence he’ll have value to add ‒ and won’t throw Greg’s baby out with the bathwater either. This isn’t a total revolution, it’s an iteration.”

Now Hewett had had time to get his head under the hood of the business, what had he found?

“There’s a lot of challenges, there’s a lot of positives too ‒ there are [a] significant amount of green shoots in markets both internationally and domestically that are well worth pursuing … but fundamentally we have to get costs under control, and sell more ‒ it’s as simple as that.

“Having said those words, there’s a hell of a lot of devil in that detail.“

One of the more positive wool-related developments of recent times was yesterday’s announcement from the Government that it had decided to use wool fibre products ‒ carpets and insulation primarily ‒ in the construction and refurbishment of state buildings.

Hewett was very pleased with the announcement, but said it amused him to see Economic Growth Minister Nicola Willis and NZ First leader Winston Peters take lots of credit for the initiative, which he described as Associate Agriculture Minister Mark Patterson’s “baby”.

“He has been instrumental in getting this piece of legislation or guidance within the ministries and Government departments and I really am grateful for his efforts ‒ frankly, it’s been a long time coming, and good on him for seeing it through.”