John Winning is set to step down as chief executive of premium appliance retailer Winning Appliances, as the family-owned business prepares for a potential $1 billion-plus listing on the ASX and secures a $100 million investment from Ellerston Capital.

The move comes days after ChannelNews exclusivelly revealed disturbing emails he had sent to staff who claimed to ChannelNews that the John Winning junior was “losing the plot”.

See original story here. 

The leadership shake-up comes at a critical juncture for the 120-year-old retailer, with sources suggesting some suppliers will welcome the change following recent tensions and internal scrutiny.

According to the Australian Financial Review, Ellerston Capital is poised to invest via a convertible note that could translate into a 10–15 per cent stake, valuing the business at more than $1 billion ahead of a mooted IPO later this year.

The move signals confidence from Ellerston — the former manager of the Packer family fortune — in the resilience of Australia’s premium appliance sector, despite weakening consumer sentiment. The firm is betting on continued growth driven by housing demand and expansion in the online retail segment.

However, Winning Appliances enters this next phase under mounting pressure.

The company’s after-tax profit plunged 60 per cent in FY25 to just $1.9 million, while EBITDA slipped from $30 million to $25 million. Despite revenues holding at approximately $886 million, analysts warn that shrinking margins and rising costs could weigh heavily on investor appetite.

Compounding the challenge are supply chain disruptions linked to geopolitical instability in the Middle East, with the retailer heavily reliant on European appliance brands. At the same time, competition is intensifying, with JB Hi-Fi expanding its e&s stores and Harvey Norman Commercial strengthening its hold in key markets such as Victoria and the Gold Coast.

Internally, there are growing signs of restructuring. Industry sources point to a cost-heavy operating model, with logistics, call centres, and delivery networks under review. Recent executive departures, including a chief operating officer, have fuelled speculation of broader organisational changes ahead of a public listing.

The future leadership of the company remains unclear, with both internal and external candidates under consideration. The incoming CEO will inherit a business transitioning from a family-run operation to one facing the scrutiny and expectations of public markets.

Winning Appliances, founded in 1906, operates 18 stores nationwide and owns Appliances Online — a key growth engine now facing increased competition from players such as The Good Guys.

Despite the challenges, the company insists momentum remains strong.

“The plan is to IPO before the end of the year. Despite a tough macro environment, the business is performing well and experiencing double-digit sales growth this financial year,” said Sam Fay, head of external affairs at Winning.

John Winning, who took over as CEO in 2011, will shift focus to his role as executive chairman of the family’s investment vehicle, Yandoo Capital.

“After a lot of thought, I’ve also decided that the time is also right for me personally to step back from the role of Group CEO once a suitable replacement has been identified,” Winning said.

“After more than 20 years actively involved in the business, I’ve decided to focus on passions outside of the Group.

“Stepping away from day-to-day leadership gives me the opportunity to focus more time on exploring other interests, while knowing the Winning Group is in very good hands.

“The board and I have commenced a search for a new Group Chief Executive, with a considered transition plan in place. An announcement will be made in due course.

Ellerston executive chairman Ashok Jacob will join the board following completion of the deal, backing the company’s long-term strategy.

“We see this as a rare business built over generations,” Jacob said. “Our role is to support its continued growth, particularly in the online appliances segment.”

Still, with profits under pressure, supply chains strained, and competition intensifying, Winning Appliances’ planned market debut will test investor confidence in the resilience of Australia’s discretionary retail sector.