STEPHEN McPhee has left his post as Seasiders’ first-team coach.
The 30-year-old, who joined the coaching staff after a knee injury forced him to retire two years ago, is understood to have walked out after a disagreement about wages.
The timing is far from ideal and Holloway said: “I feel for him to be fair. I can understand the chairman’s point of view but he (Stephen) is adamant that he can’t work for that (wage).
“I liked his development. I thought he had been absolutely outstanding over the summer.
“But as I told him, I can’t change certain things. It is not my position to do that. I can only make recommendations.”
George Wood has replaced Andy Fairman as goalkeeping coach.
Wood made 117 Seasiders appearances from 1971-77 before joining Everton.
The 58-year-old, capped four times by Scotland, has worked as a goalkeeping coach at Cardiff, Hartlepool and Swindon.