Even if that's the case, I think sometimes this is what needs to happen that makes you realize the change/s that has to be done to be better. (be more transparent, fire some managers or key people, etc.)
Either way it's a very strong vote of no confidence in the existing staff by the CEO.
Unless there is a long story of trying to improve the app internally, it appears this CEO decided at the bar that his own staff wasn't good enough and needed to be replaced with external consultants without considering other root causes (including himself).
Executives that are easily persuaded by the sales pitches of external consultants and don't listen to their own people are a dime a dozen.