As the Launceston timber company's share price fell almost 6 per cent to 47.5 cents, company secretary Wayne Chapman announced the retirement of Mr Gray after 14 years as a director.

Mr Gray had flagged that he would retire by June 30 when Gunns announced its restructure plans, which included the sale of its Mitre 10 hardware and Tamar Ridge winery business as well as the creation of a new entity to look after the $2.5 billion Bell Bay pulp mill.

Mr Gray leaves the board with almost 102,000 ordinary shares in his own name and 488,901 in total.

He will remain as a director of Gunns Plantations and it is understood that he will play a role in the new pulp mill joint venture called Southern Star Corporation - which is yet to secure a partner and finance.

Mr Gray's departure leaves chairman John Gay and Richard Millar as the only Tasmanians on the Gunns board.

Mr Gay will retire before the company's annual meeting later this year and will take on the chairmanship of Southern Star.

There had been pressure from investors on Mr Gay and Mr Gray to quit the board.