Lloyd Dunn has been appointed CEO of DX Group, which has secured £24m from investors to get the business back on track.
Former Tuffnell’s chief executive Dunn has put £5m into the business in the form of a loan note.
DX Group’s largest shareholder Gatemore Capital Management has put forward £11m, including the £2m unsecured loan that was announced last month, and Hargreaves Hale £7.5m, all in the form of loan notes.
The loan notes can, subject to shareholder approval, be converted to DX Group shares at a latter date.
Former CEO Petar Cvetkovic stepped down in July, after an “exceptionally difficult year” at the business, the financial results of which were expected to be released last month.
Dunn said the refinancing of the business was a “critical step” in turning it around.
The operator said the money will fund restructuring and capital expenditure, as well as address a shortage of working capital.
Future board members were also announced by the company today. Former Tuffnells chairman Ron Series will replace Bob Holt as chairman, and will be joined by Russell Black and Paul Goodson as non-executive directors at DX Group.
Holt will retire when the new appointments take effect, which will happen after the publication of the group’s results for the year ended 30 July 2017.
DX Group said it would make a further announcement on this in due course.
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DX Group chairman Bob Holt said new CEO Dunn will join the board after the first portion of the loans have been secured.
He said: "These changes together mark a new chapter for DX and provide firm foundations for the turnaround of the group.
“I would like to thank our shareholders, bankers, staff and customers, for their ongoing support during a difficult time for the group, and I view the future for DX with renewed confidence."
Liad Meidar, managing partner at the operator's largest shareholder Gatemore, said the enthusiasm of those working on the business transformation was “palpable”.
He said: “Today is a new start for DX.
“DX now has a healthy balance sheet and is poised to return to historic levels of profitability over the coming years under this new team.”
