Shares in clothing retailer Esprit were suspended from trading in Hong Kong on Wednesday after losing more than 20 percent of their value following the chief executive's resignation.
Chief executive Ronald van der Vis resigned Tuesday in the middle of a campaign to revitalise the brand, which he said last year had "lost its soul".
The company suspended trading after its shares plummeted 21.8 percent on the Hong Kong stock exchange.
"With Mr. van der Vis' departure, it is unclear if Esprit has sufficient management resources and capability to drive and manage its transformation," DBS Vickers Securities analyst Alice Hui told Dow Jones Newswires.
"The news is negative, especially as Esprit is still at the early stage of its transformation plan."
Van der Vis resigned for "personal and family reasons", the company said in a statement Tuesday. It said it would "continue to execute the transformation plan" which had a "successful start".
Esprit announced in September last year that it would invest more than HK$18 billion ($2.3 billion) in product design and stores over the next four years to regain the brand's "shine" and profitability.
Esprit closed 80 stores in North America last year after its annual profit plunged 98 percent.
Founded in San Francisco in 1968, Esprit sells clothing in more than 40 countries.