Indigo Books & Music CEO Peter Ruis resigns one year after taking job

One year following his appointment to the highest position, the CEO of Indigo Books & Music Inc. is departing.

The books and home goods retailer located in Toronto made an announcement on Thursday regarding the resignation of Peter Ruis. The board expressed their gratitude for his efforts within the company and wished him success as he embarks on fresh endeavors in his professional journey.

His departure, for which the company provided no clarification, is the most recent unexpected reorganization at Indigo, which has encountered numerous alterations in leadership during the past year.

Andrea Limbardi, the president of Indigo and someone who has been with the company for 21 years, shared on her LinkedIn post on Wednesday that she has recently departed to lead the apparel company, Reitmans Canada Ltd.

However, the most significant change that Indigo has witnessed in the past few months has been caused by Heather Reisman, the renowned founder of the company. She is well-known for transforming Indigo into a dominant Canadian retail powerhouse, boasting 171 stores, and for introducing the highly profitable "Heather's Picks" stickers on popular books. Reisman held the position of chief executive until last year when Ruis took over, and recently stepped down from the board on August 22nd.

Prior to her retirement, four out of ten directors at Indigo decided to depart from the board. Chika Stacy Oriuwa stated that her reason for resigning was due to a lack of trust in the leadership of the board and feeling mistreated.

According to Richard Powers, who works as a faculty member at the Rotman School of Management at the University of Toronto, the rapid series of modifications and a drastic 90% decrease in stock prices over the past five years indicate that Indigo is currently facing a critical situation. Powers also suggests that the company failed to establish an effective plan for replacing its leader, in case Ruis decided to depart.

"What can we expect in the future?" he asked. "Who will take charge and stabilize the situation?"

Ruis, who formerly served as Indigo's president, now faced the pressure to establish a stable leadership within the company and make his distinctive mark. Just a month ago, he confidently expressed that his team fully supports his ideas.

"I am confident that we have the backing of everyone," Ruis expressed to The Canadian Press during an interview on August 25.

His plan for the company revolved around carrying forward Indigo's enduring objective of combining books and home goods throughout their stores.

He planned to try out the strategy again at a city store that the company is going to open in the first location at The Well building in Toronto later this month.

The establishment was meant to offer pastries, coffee, beer, and wine for sale. Additionally, it aimed to provide a designated space for customers to listen to music, an area with arcade games, as well as small cozy corners dedicated to home scents, plants, and Manga, which are highly popular Japanese comic books.

However, Ruis admitted that attracting customers would require additional effort due to the decrease in purchasing power caused by inflation. Furthermore, the company encountered a cyberattack in February which resulted in the website being down and hindered sales.

"Of course, when you temporarily shut something down, you inevitably lose some customers along the way and you need to attract them back," he mentioned.

The great thing is that every week, a greater number of individuals return, but it still remains a difficulty, I'd say, for us to successfully bring back every single person.

Ruis appeared capable of handling the job, and Reisman even commended his "abundance of knowledge and expertise" in the retail industry of the United Kingdom, which made him perfect for the role. His CV is filled with experience gained at well-known companies such as Marks & Spencer, Ted Baker, and Levi Strauss & Co.

In the women's clothing brand Anthropologie URBN Group, he successfully navigated the company's growth on a global scale. Meanwhile, at the esteemed U.K. retail store John Lewis, he completely revamped the brand from its old-fashioned origins and turned it into a trendy fashion hotspot. This transformation led to a significant increase in clothing sales, exciting partnerships with renowned designers, and memorable Christmas advertisements that created a buzz among customers.

Upon assuming the role of president in February 2021, Ruis became a member of the company while residing in England. However, Indigo announced that he and his family would relocate to Toronto.

"This individual is extremely talented, but their career ended in under a year without receiving any additional explanation from the management. It leaves us with a lingering curiosity about what might have transpired." Powers pondered.

He described Indigo's statement regarding Ruis' departure as "dull" and claimed that it encourages conjecture.

According to Powers, if he had been transitioning to a different role elsewhere, they would have included that information.

The company announced that there were no individuals accessible for an interview on Thursday.

With Ruis's departure looming, Powers mentioned that it wouldn't be astonishing if Reisman makes a comeback to provide a sense of steadiness.

Ruis has accepted the offer to work as a consultant for Indigo for the upcoming two months "in order to facilitate a seamless change in leadership."

The board stated in its announcement that they are currently prioritizing speedy action in order to identify the most suitable leader to propel the company's progress following Peter's departure.

For now, during the meantime, Craig Loudon, the chief financial officer of Indigo, and Damien Liddle, the general counsel of the company, will collaborate closely with the board members to offer everyday guidance.

Powers expressed complete confidence in their ability to retain control of the ship temporarily.

However, if they fail to retain their personnel, individuals will likely begin joining other establishments.

The initial release of this article by The Canadian Press took place on September 7, 2023.