Bob Thorn quits Super Cheap Auto (merged)

Jason Whittaker · 5 Jan 2006, 08:53 (Ref:1495294)

Just reading through some business news: Bob Thorn has quit today as the managing director of Super Cheap Auto. He's pursuing "personal interests".

Thorn, as you'd know, is a long-time V8 Supercar supporter, former driver, and the man behind the naming-rights sponsorships of Paul Weel Racing and the Bathurst 1000.

There's no immediate impact on those arrangements obviously, which are in the middle of multi-year deals. But you'd hope the new guy shares Bob's motorsport passion into the future. And I wonder if his personal interests involve getting back into racing on a day-to-day basis?

pete55 · 5 Jan 2006, 08:59 (Ref:1495296)

Bob Thorne has resigned as Chairman of Super Cheap Auto. I wonder what it will mean to the continuing sponsorship of the PWR team and sponsorship of Bathurst in the future.

pete55 · 5 Jan 2006, 09:00 (Ref:1495299)

Sorry Jason, didn't refresh before i posted. GTR please lock this thread.

cavvy · 5 Jan 2006, 10:09 (Ref:1495352)

The new chief steps up from Chief Financial Officer - would think the sponsorship would need to stack up.

**GTRMagic** · 5 Jan 2006, 10:12 (Ref:1495354)

I think this is a little odd... the SMH announced that Mr Thorn was 'retiring'.....

If you look at the growth numbers, the chain is doing very well, with sales improving significantly over previous years, as more and more stores join the group. Except when you go a'diggin... and find that the year on year sales of original stores is going backwards (7.7% in NZ) or pretty flat here in Oz....

This suggests a business that isnt really growing at all.. in the sense that the baseline sales from original stores are regressing.... not much point opening new stores regularly if the Y2 results arent significantly better than Y1.

More curious too is the appointment of the beancounter to the hotseat!!! Scary stuff

The PWR relationship was handled by Mr Thorn personally... I would be curious to see if SCA are getting a return on their investment... or indeed if they are able to measure the success of their motorsport sponsorships given they clutter the media world with Steve Lenda, magazine/catalog and radio advertising.... too much input, difficult to determine purchase intent from each of the different stimuli.........

cavvy · 5 Jan 2006, 10:22 (Ref:1495364)

Quote:

Originally Posted by GTRMagic

I think this is a little odd... the SMH announced that Mr Thorn was 'retiring'.....

If you look at the growth numbers, the chain is doing very well, with sales improving significantly over previous years, as more and more stores join the group. Except when you go a'diggin... and find that the year on year sales of original stores is going backwards (7.7% in NZ) or pretty flat here in Oz....

This suggests a business that isnt really growing at all.. in the sense that the baseline sales from original stores are regressing.... not much point opening new stores regularly if the Y2 results arent significantly better than Y1.

More curious too is the appointment of the beancounter to the hotseat!!! Scary stuff

The PWR relationship was handled by Mr Thorn personally... I would be curious to see if SCA are getting a return on their investment... or indeed if they are able to measure the success of their motorsport sponsorships given they clutter the media world with Steve Lenda, magazine/catalog and radio advertising.... too much input, difficult to determine purchase intent from each of the different stimuli.........

old habits die hard GTR, bean counters dont lose their beans

Aarrgh8 · 5 Jan 2006, 10:22 (Ref:1495365)

I saw that SuperCheap's share price dropped about 30c today. I theorised about why it was so, but Bob stepping down from Chairman of the group cancels out my theories.

cavvy · 5 Jan 2006, 10:24 (Ref:1495370)

Half yearly results out, share price down, Bob Thorn retires.

**GTRMagic** · 5 Jan 2006, 10:26 (Ref:1495371)

Quote:

Originally Posted by Aarrgh8

I saw that SuperCheap's share price dropped about 30c today. I theorised about why it was so, but Bob stepping down from Chairman of the group cancels out my theories.

You would like to think the much anticipated official announcement about Mr McConville joining SCAR wouldnt hurt the price that much

Razor · 5 Jan 2006, 10:37 (Ref:1495382)

Well, the town where the old man work's their is a SCA store and is more emptier than a large tub of ice cream on christmas day. They are getting more expensive and with rival companies such as Repco lowing prices and giving more bang for buck that is why SCA is losing ground in the finacial market.

Sol · 5 Jan 2006, 10:45 (Ref:1495395)

Firstly, Bob was the CEO and not the Chairman. There is a big difference.

The SCA business is bigger than any one individual, even Bob Thorn.

Bob has done very well out of the public listing of SCA, check out their prospectusfor the Top 20 Shareholders list.

You can't knock Bob Thorn for what he has done in driving the growth of SCA over many years. He is one of my business heros.

The SCA business wil continue to go from stength to strength under the new CEO.

I don't own SCA shares (but wish I had brought at listing).

**GTRMagic** · 5 Jan 2006, 10:49 (Ref:1495398)

I agree with you Sol, but the market seems also concerned with year on year growth on comparable stores not being particularly strong

The issue becomes painful when the outlets reach saturation stage, when growth cannot come from new stores, and there must be significant extra sales out of the existing network....

Arguably SCA is already workinga round this by venturing into the camping stores... to keep the growth numbers tickling, while not actually enjoying a vision to develop the stores they have already....

275 GTB-4 · 5 Jan 2006, 12:03 (Ref:1495457)

That Steve Lenda living next door would be enough to bring the strongest to tears....heres hopeing the new beancounter-lead Supercheap continues to support Motorsport

Spunky · 5 Jan 2006, 12:34 (Ref:1495491)

A couple of months ago I met someone who told me that Thorn was going to get pushed off the board, I thought at the time "yeah right" but look at this hey!!!

cavvy · 5 Jan 2006, 20:20 (Ref:1495814)

Quote:

Originally Posted by Greg Barton

Well, the town where the old man work's their is a SCA store and is more emptier than a large tub of ice cream on christmas day. They are getting more expensive and with rival companies such as Repco lowing prices and giving more bang for buck that is why SCA is losing ground in the finacial market.

Thanks Greg, sure beats buying the Financial Review.

Can you analyse Repco next for me, ta !

Just Do It! · 6 Jan 2006, 04:26 (Ref:1495967)

Quote:

Originally Posted by Sol

Firstly, Bob was the CEO and not the Chairman. There is a big difference.

The SCA business is bigger than any one individual, even Bob Thorn.

Bob has done very well out of the public listing of SCA, check out their prospectusfor the Top 20 Shareholders list.

You can't knock Bob Thorn for what he has done in driving the growth of SCA over many years. He is one of my business heros.

The SCA business wil continue to go from stength to strength under the new CEO.

I don't own SCA shares (but wish I had brought at listing).

The SuperCheap business may not be any bigger than any individual, but to the average person, Bob Thorn was fairly proactive and prominent as the face of SuperCheap....even the best of my recollection of NZ TV ads don't ever spring Steve Ellery or his race car for mind. Even Greg Murphy hasn't really featured, and certainly not the team mate that was never meant... errrr, it was always Steve and Bob. Hopefully Steve continues as he is very funny.
Based on his proactive stance, Bob will be hard to replace as not only was he sharp as a businessman, he was also extremely personable. And, no, you can't knock him at all.

At the share price peak, I am reliably told that he had AUS$30 million in shares. One could live on dividends I am sure.

The future direction of the company shall be interesting to see. I am always impressed with their variety and store layout

275 GTB-4 · 6 Jan 2006, 05:57 (Ref:1495984)

So do we know what effect (if any) this will have on SCA sponsorship for the 1000??

Grimace · 6 Jan 2006, 06:49 (Ref:1495998)

What about the >>>$27 million Bob Thorn is investing 05-06 into BCF ( BOATING, CAMPING, FISHING) chain of sports stores? totally seperate from motorsport, is that owned by Thorn himself or by SCA?

A lot of QLD fishing tackle stores are a bit worried about this chain store onslaught to their business!

Just Do It! · 6 Jan 2006, 09:19 (Ref:1496041)

SCA I would think, as SCA already have interests in that field.

KE30MAN · 6 Jan 2006, 09:22 (Ref:1496042)

Any CEO that puts himself in the ads is not thinking about the long term well being of the business...if he doesn't plan on being there for the long term.

Just Do It! · 6 Jan 2006, 09:53 (Ref:1496055)

I think CEO's actually need to take a more proactive stance in marketing their companies. Besides, Bob may never have envisaged what has happened

Sol · 6 Jan 2006, 10:10 (Ref:1496065)

The BCF business is a paert of Super Cheap Auto Limited, not Bob Thorn's personally.

The two things that I really admire about Bob and Reg Rowe (the founder of Super Cheap), is that Thorn had the vision and drive to build the business from a few stores to a market leader in a relatively short space of time, and that Reg Rowe was smart enough to let Thorn drive the business and give him the control and support he needed to do it.

I think it is coming to light that Bob Thorn has probably masde the sort of mistakes many CEOs of newly listed companies make - disappointing the market.

After successfully listing the company, Bob may have decided his feels his job is done and it is time for someone else to take over whilst he enjoys the fruits of his hard labours.

Nado · 6 Jan 2006, 10:44 (Ref:1496083)

I agree Sol, apparently they're not "friends" outside, they may not even really like each other, but Reg was smart enough to just let Thorn alone to do his job, being on a the stockmarket though and things change significantly.

team drinkalot · 6 Jan 2006, 10:50 (Ref:1496087)

I am not surprised of the sales downturn. I used to shop there but I quickly realised that they sell mostly crap, it is supercheap JUNK.

Razor · 6 Jan 2006, 12:37 (Ref:1496143)

Quote:

Originally Posted by team drinkalot

I am not surprised of the sales downturn. I used to shop there but I quickly realised that they sell mostly crap, it is supercheap JUNK.

And expensive too, $12 for a pair of working gloves? they should be either 5 or 6 bucks.

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