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Home » News » Brewing Trouble: DavidsTea Heir Demands CEO Change

Brewing Trouble: DavidsTea Heir Demands CEO Change

Family feud collides with corporate governance as DavidsTea faces calls for leadership change.

Editorial Team (ET)September 24, 2025



DavidsTea, once a darling of Canadian retail with its bright turquoise branding and mall-front energy, is again in the headlines. This time it is not about product launches or expansion plans, but a deeply personal and corporate conflict playing out within the Segal family, heirs of the late founder Herschel Segal. His son, Philip Segal, a lawyer based in New York, is calling for a complete leadership overhaul, accusing the company of poor governance and chronic mismanagement. At the heart of this storm is a family feud layered with corporate decline, shareholder frustration, and the question of whether DavidsTea can find a profitable path forward.

The Family Rift After Herschel Segal’s Passing

The flashpoint came in May with the death of Herschel Segal, a titan of Canadian retail who had earlier founded Le Château and later co-launched DavidsTea with his cousin, David Segal. In the wake of his passing, Philip and his sister—children from Herschel’s first marriage—were left out of his will. Their only inheritance lies in a trust tied to Rainy Day Investments Ltd., the family holding company that controls nearly 45 percent of DavidsTea. Yet Rainy Day is steered by Herschel’s widow, Jane Silverstone Segal, who chairs the DavidsTea board. Her daughter, Sarah Segal, has led the company as chief executive since December 2020. That leaves Philip with neither voting power nor influence, an arrangement he has now turned into a public crusade.

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