MONTREAL, Canada—DAVIDsTEA CEO Sylvain Toutant has resigned to pursue personal interests, effective year end. He is the second top-level executive to depart the company since spring.
Toutant joined DAVIDsTEA in June 2014 at the invitation of board members pursuing an initial public offering (IPO) planned for 2015. Under his direction, the company executed a broad expansion in the United States, opening 30 to 40 stores per year with funds from the IPO. But the boost was short-lived as disappointing stock price and unfavorable economic conditions led to losses.
DAVIDsTEA has since recovered with strong quarterly returns and currently operates 208 stores, mainly in Canada. Toutant did not state specific plans but in a joint release issued by DAVIDsTEA he said the decision was difficult.
In March, DAVIDsTEA namesake David Segal resigned his position as brand ambassador—signaling an end to his role in developing many of the company’s innovative mix of flavors and tea blends.
Segal, 35, has since pursued other entrepreneurial interests. He cofounded the company in 2008 in Quebec with his cousin Herschel Segal, founder of the Le Chateau clothing chain. David Segal retains about 10% of the company’s shares. The company surged 42% in value following a hot stock market debut in June 2015 but has since traded in a range from $9 to $12 per share descending from a high of $30.
