Mothercare boss Daniel Le Vesconte is out with immediate effect after a five-month spell in the role in which shares fell by 40%.
Le Vesconte started in January, as Mothercare’s first chief executive in two years. But shares quickly slid and the decline became more drastic when the firm revealed it may have to issue more stock to help pay its debts last month.
Mothercare’s UK arm collapsed in 2019 and plans to focus operations abroad were impacted by the war in Ukraine, which prompted the company to suspend the Russian business that brought in almost a quarter of its profits.
Chairman Clive Whiley and finance boss Andrew Cook will again take over CEO duties, as they did before Le Vesconte’s arrival, until a new boss is found.
Whiley said: “The Board believes that a change in CEO is in the best interests of the company and its shareholders.
“The Board is fully committed to the group’s successful long-term strategy and, further to last month’s pre-close trading update, the company continues to perform in line with expectations. In addition we are progressing a number of options to refinance the group’s debt facilities. Working together with Mothercare’s senior management team I am confident that the group’s successful, consistent strategy and culture will continue the group’s profitable growth.”
Shares were up 5.8% to 6.0p today.
