John O'Reilly, chief executive of Rank Group, the owner of Mecca Bingo and Grosvenor Casinos, will retire on January 29 after nearly eight years in the role. The company announced that CFO Richard Harris will serve as interim CEO while a permanent successor is sought.
O'Reilly's departure follows a challenging period for Rank, including a €7.1 million (£6.1 million) payment fraud at its Spanish businesses Enracha and Yo, disclosed just over two weeks ago. Shares in the FTSE 250 firm fell sharply on the news.
The Autumn Budget also dealt a blow by confirming an increase in remote gaming tax from 21% to 40%, which Rank warned would reduce annual earnings by approximately £46 million. The government's decision to scrap bingo duty will provide a £6 million benefit, leaving a net £40 million impact.
O'Reilly said, "It has been a privilege to lead Rank for the past seven-and-a-half years, and I am proud of all that we have accomplished in that time." He will continue to support the business until the end of the financial year.
Chairman John Ott praised O'Reilly's leadership and passion, adding that Harris would provide continuity and strategic leadership to drive performance and maximise shareholder returns.
