Yahoo Finance Mothercare chairman steps down weeks after chief executive departs
The chairman of Mothercare has stepped down just weeks after the troubled retailer’s chief executive was asked to leave following a decline in sales, as crunch talks with creditors continue.
Alan Parker is being replaced with immediate effect by Clive Whiley.
During his six years as chairman of the mother and baby retailer, Mr Parker has had three chief executives. Simon Calver resigned unexpectedly as chief executive in 2014 and Mark Newton-Jones took over from him, but he was asked step down earlier this month and replaced with former Kmart and Tesco executive David Wood.
Mr Wood said: "Mothercare is currently facing a number of challenges, not least a highly competitive retail environment. We recognise the clear needs ahead of us as we pursue our refinancing to allow us to complete our transformation plan.”
He said that “a number” of key shareholders supported Mr Whiley's appointment and emphasised his refinancing and restructuring experience.
“He has the skills required to help stabilise the business and take it forward."
Last week Mothercare said it was in “constructive dialogue” with its lenders after bringing in KPMG in March to help it renegotiate its debts and secure new funding. The company is locked in rescue talks with creditors to refinance its debt before it breaches financial covenants.
The retailer is reportedly hoping to reduce costs by entering a company voluntary arrangement (CVA) – a form of insolvency aimed at protecting a business from going bust by reducing its costs, which could lead to Mothercare closing a third of its 143 stores in the UK.
Its sales in the UK were down 5.6pc in the 12 weeks to March 24, compared with the same period the previous year, while international in-store sales were down 11pc, including currency fluctuations.
