Yahoo Finance Mothercare Boss Calver Quits Amid Struggles
The boss of high street chain Mothercare (Other OTC: MHCRF - news) , who was brought in from internet movie company LoveFilm to boost online sales, has quit after less than two years in the job.
Simon Calver's decision to resign with immediate effect comes just weeks after the firm issued a profits warning on the back of poor Christmas trading figures.
He has overseen a major store reduction programme since being appointed as chief executive in April 2012.
However, he struggled to make the company more profitable amid fierce competition from supermarkets and online retailers.
Mothercare did not give a reason for Mr Calver's departure, although chairman Alan Parker said: "We have a strong executive management team which is very capable of running the business in the interim while the search for a new chief executive is under way."
Mothercare has around 230 stores, including its Early Learning Centre outlets.
Mr Parker said his outgoing chief executive, who is entitled to £250,000 in lieu of six months' notice, had accelerated the company's growth as a "multi-channel retailer".
However, the company made a £21.7m operating loss in the UK in the last financial year.
Despite strong international sales, it warned in January profits for the present year "are likely to be below the current range of market expectations".
In today's statement, the company said: "The board remains confident in the underlying strength of Mothercare and expects results for the year ending March 2014 to be in line with current market forecasts."
The company's share price has continued to fall since tumbling by around a third on the day its Christmas results were announced.
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