7-Eleven board to change business model

The 7-Eleven board will discuss the overhaul of the company's business model following the underpayment scandal.

The local chain's founder and chairman, Russ Withers, and chief executive Warren Wilmot resigned from their positions on Wednesday following weeks of revelations that 7-Eleven stores chronically underpaid foreign students and threatened them with deportation if they reported the issue.

The convenience stores came under scrutiny following an ABC Four Corners and Fairfax investigation that found the company was paying its workers half the minimum wage.

Former iiNet and West Coast Eagles chairman Michael Smith has been named chairman and while he denies it was the business model that forced franchisees to look at ways to cut costs, he said the board would discuss ways it could be changed during a meeting on Thursday.