Ben Gordon to quit as Mothercare boss
12 October 2011 09:52
After nine years in the job, the boss of Mothercare is to step down following a prolonged period of difficult trading culminating in a dire sales update that triggered a 35% slump in the company's share price.
Chief executive Ben Gordon will leave on November 17th by "mutual consent", Mothercare said, amid tumbling sales and a weakening profits outlook.
The mothers-to-be, babies and children's goods retailer, which has seen its share price slide more than 60% since the start of the year, warned last week that its full-year performance will be disappointing.
Mr Gordon, whose replacement is yet to be found, led the company's takeover of the Early Learning Centre and its international expansion.
Mothercare has 353 stores in the UK and another 969 overseas.
Mothercare's battered shares surged 12% to 215.6p after the announcement.
Ben Gordon, who was on an annual salary of £600,000, picked up a total of £5.2 million in wages and share incentive scheme payments in the year to March 2011.
Mothercare's last annual report said the chief executive was entitled to a 12 months notice period and would receive the equivalent salary for the unexpired portion of the period.
Commenting on Mr Gordon's departure, Mothercare chairman Alan Parker said: "We are grateful to Ben for the enormous change and improvement he has brought to Mothercare."
The search for a new chief executive has started immediately, Mothercare said.
The company, which this year celebrated its 50th anniversary, was hit by a downturn in consumer confidence as the fallout from the UK riots continued to knock trading.
Mothercare last week said UK like-for-like sales were down 9.6% in the 12 weeks to October 1 and the outlook for the all-important winter trading period had "materially worsened."
The group recently announced plans to overhaul its UK retail estate, which will include 110 high-street store closures as the business focuses on out-of-town Parenting Centres, which contain its Early Learning Centre brand.
Mr Gordon was previously senior vice president and managing director for the Disney Store, Europe and Asia Pacific.
A Bristol University graduate, he has also held senior management positions with WH Smith in Europe and the United States, and cosmetics group L'Oreal, in Paris.
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