Mothercare boss steps down after just five months in charge
Mothercare CEO Daniel Le Vesconte steps down after just five months
- Daniel Le Vesconte was Mothercare’s first CEO in three years
- He arrived shortly after the company announced a significant decline in its half-year earnings
- Le Vesconte came to Mothercare from casualwear retailer Abercrombie & Fitch
Mothercare’s boss has resigned with immediate effect after less than five months in office amid ongoing turmoil at the maternity retailer.
Daniel Le Vesconte became CEO in mid-January, making him the first person to hold the position since the departure of Mark Newton-Jones in early 2020.
He arrived shortly after the company reported a significant drop in half-year profits and revenue following its exit from Russia, where it earned between a fifth and a quarter of its global retail sales.
Trouble: Mothercare has endured a protracted period of trouble, with its UK operations falling under administration in 2019 after the high street endured years of strife
Mothercare reported in May that retail sales by franchise partners fell by £63 million to £322 million in the past financial year.
At the same time, the company announced that discussions were underway with its lender to refinance, amend or renegotiate a debt facility due to recent interest rate hikes and warned that future covenant testing may need to be waived.
Le Vesconte came to Mothercare from casualwear retailer Abercrombie & Fitch, where he spent three years overseeing the group’s brands, including Hollister and Gilly Hicks, in Europe, the Middle East and Africa.
He also held senior positions at bootmaker Dr. Martens, Hush Puppies owner Wolverine Worldwide, and California-based skateboarding apparel company Vans.
An explanation for his departure was not given. Mothercare Chairman Clive Whiley and Chief Financial Officer Andrew Cook will continue to lead the company until a successor to Le Vesconte is appointed.
Whiley told investors, “The board believes that a CEO change is in the best interest of the company and its shareholders.
“The Board of Directors is fully committed to the Group’s successful long-term strategy and, following last month’s pre-close trading update, the Company continues to perform in line with expectations.
“In addition, we are working on a number of options to refinance the group’s debt facilities.”
Mothercare has endured a protracted period of difficulty, with its UK operations going into receivership in 2019 after its high street operation endured years of struggle caused by intense competition from supermarkets and online retailers.
All of its UK stores were subsequently closed, but the company soon struck a deal to sell its products in Boots stores and continued to supply hundreds of franchised stores abroad.
However, the Covid-19 pandemic caused sales to plummet despite a surge in online commerce after lockdown restrictions forced many stores to temporarily close.
Demand recovered significantly as trade restrictions were eased, with the group returning to a profit of £12m in the 12 months to March 2022, after a loss of £21.5m last year.
Mothercare shares were flat at 5.63p on Friday morning, though they’ve lost more than 97 percent of their value over the past decade.