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McGrath in turmoil after entire board walks out

Founder of one of Australia’s real estate giants John McGrath will take back the reigns of the business after its chief executive, chairman and entire board walked out the door.

McGrath previously stepped down in 2016 but will now act as the new interim executive chairman.

Two years ago McGrath floated on the stock market at $2.10 but lost more than a third of its value in just three months.

Ross Greenwood speaks with Managing Director of Folkestone Asset Management Winston Sammut who has been following the real estate giant.

“It’s a very negative development when you have issues with management and the board without a real explanation of why this happened.

On whether John McGrath would do well to take the company private, Mr Sammut says “it’s probably the right them for him to do”.

“Maybe it should never have been listed in the first place.”

Listen to the full interview below