HSS replaces chief executive

Paul Nolan's sudden departure and replacement fuels industry speculation about venture capitalist pullout.

HSS chief executive Paul Nolan has been replaced. A statement from HSS said new chief executive Chris Davies took control on 29 August but did not elaborate.

Nolan became managing director after HSS was bought from the Davis Service Group for almost £143m in 2004. He reorganised the group, selling the event hire business, closing 50 branches and setting up 45 'premier centres'.

The speed of Nolan's departure and replacement has taken many by surprise and more than one commentator has suggested he didn't initiate the move. Another industry player said he had spoken to Nolan within the past few weeks and concluded: "He certainly didn't jump."

When Contract Journal contacted Nolan he said he had "wanted to move on" and had his eye on another position, but was not ready to disclose what that was. He said HSS had progressed a long way during his tenure and was in a lot better shape than it was when he was appointed.

One source suggested the move could be in readiness for 3i, the biggest backer of the buy-out, to make its exit. Venture capitalists, such as 3i, usually invest in a company for three to five years and a source said 'they will want their pound of flesh'. A spokeswoman at 3i said it leaves the running of companies it has invested in to the appointed managers, adding that HSS had been a good investment.

Davies was previously head of Disney Stores Europe and had been UK managing director of Staples Office Superstores.

[Contract Journal, 6 September 2006, p 19]