The chief executive of Best & Less has left after just nine months in the role, marking the second early departure of a CEO at the budget retailer within a short period.
Aaron 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. However, the company has now confirmed that Faraguna has tendered his resignation.
In a statement, Best & Less announced that Ray Itaoui, executive chairman of Best & Less Group, has assumed day-to-day responsibilities to maintain business continuity. Faraguna will continue to be available to ensure a smooth handover, the spokesperson added.
Faraguna had publicly announced his appointment as CEO of Best & Less on LinkedIn earlier this year, expressing gratitude to Itaoui for believing in him and offering the opportunity to lead “such a talented and passionate team.”
Founded in 1965, Best & Less operates more than 200 stores across Australia. The clothing and homewares retailer is co-owned by Ray Itaoui — who became CEO of Sanity in 2007 and purchased it two years later — alongside billionaire businessman Brett Blundy.
Itaoui had personally recruited Faraguna from sneaker chain JD Sports, reconnecting after Faraguna began his retail career at Sanity in 1999. Describing the appointment earlier this year, Itaoui told The Australian Financial Review that Faraguna was “exactly what we are looking for” and possessed “the energy we need.”
Before Faraguna’s appointment, Best & Less had announced in April 2023 that former The Iconic CEO Erica Berchtold would be joining as its incoming chief executive. However, in May, Itaoui and Blundy made a takeover bid for the discount fashion retailer.
By late June — months before Berchtold was due to start in September — the company and Berchtold agreed not to proceed with her appointment. Itaoui then assumed the CEO responsibilities himself.
In July 2023, Itaoui and Blundy delisted Best & Less from the Australian Securities Exchange, privatising the company two years after its initial public offering.
Reflecting on the role, Berchtold told Australian businessman Mark Bouris on his podcast, The Mentor, in August 2023: “I resigned, I quit my job, I signed up. I wasn’t allowed to start straight away, and that was fine because I wanted to do the right thing by The Iconic and see out my notice period. During that notice period, the company got bought out, privatised, and the role I wanted — the role I signed up for — was no longer the role that was there. That role just wasn’t there anymore.”
Today, Itaoui co-owns Best & Less alongside Brett Blundy, who is also the founder of Lovisa and holds a 40% stake in Dissh.
A spokesperson for Best & Less declined to answer further questions, and Itaoui was unavailable for interview.
In the 12 months to June 30, 2024, Best & Less reported a 2.2% decline in sales to $625.1 million. Despite the fall in revenue, net profits nearly doubled to $17.5 million from $9.1 million in 2023, according to the company’s most recent financial report filed with the corporate regulator.
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