Paul Desmarais III is delaying his appointment to the board of Bauer-owner Performance Sports Group Ltd.
According to an Aug. 17 filing with the U.S. Securities and Exchange Commission, Mr. Desmarais will join as a director after the sporting goods company completes an internal investigation of its financials and submits audited statements with securities regulators.
Mr. Desmarais was scheduled to join the board on or around Aug. 9 as the nominee for Sagard Capital Partners LP. He would have replaced Dan Friedberg, who resigned from the board.
Mr. Desmarais is the chair of Sagard, a private investment firm controlled by the wealthy Desmarais family of Canada. With a stake of about 17 per cent, Sagard is the largest shareholder in PSG.
This news comes soon after the Exeter, N.H.-based company said on Wednesday that it is under investigation by the SEC after it delayed the filing of its audited annual financial statements.
It has also received "inquiries" from Canadian regulators, PSG said.
The disclosures sent shares of PSG tumbling 15 per cent, adding to the sense of turmoil at PSG. The stock has plunged 83 per cent so far this year.
Despite its well-known brand name in the hockey community in Canada and the U.S., PSG has been beset by falling revenues and profits, along with turnover at the executive and board level.