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Mothercare chairman Alan Parker steps down
Beleaguered mother and child retailer Mothercare announced the departure of chairman Alan Parker on Thursday, hot on the heels of the appointment of a new chief executive earlier this month.
Clive Whiley has been appointed as interim executive chairman with immediate effect.
CEO David Wood, who took over from Mark Newton-Jones on 4 April, 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.
"Clive's appointment comes with the support of a number of our key shareholders and strengthens Mothercare's leadership with specific refinancing and restructuring experience. He has the skills required to help stabilise the business and take it forward."
Meanwhile, Parker said: "After completing six years as chairman, I feel the time is right to hand over the chairmanship of Mothercare to Clive. His experience of successful restructuring and refinancing will help steer Mothercare through its next phase. I am very pleased that he is taking on the role and wish him, the board and Mothercare's management team every success in the future."
Shore Capital analyst Clive Black said: "Mothercare clearly faces a number of challenges at this time but retains an excellent and still relevant brand in our view. The new senior management team is now focused upon the previously announced refinancing initiatives whilst also seeing through the ongoing business transformation.
"As with respect to the recent announcement in relation to Dave Woods' appointment as CEO, we wish Mr Whiley good fortune in this important new role. We await any further updates with respect to the refinancing work in due course whilst Mothercare is next set to formally report to the market through its FY2018 preliminary results on the 17th May 2018."
A fourth-quarter update from Mothercare last week showed a slowdown in the company's declining sales, while the online segment returned to growth against a still-challenging backdrop.
In the 12 weeks to 24 March 2018, UK like-for-like sales were down 2.8%, which was huge improvement on the 7.2% drop seen in the third quarter. Meanwhile, online sales were up 2.1%, also massively improved compared to 6.9% a decline in the previous quarter.
International sales fell 3.7% compared to a 3% drop the previous quarter, hit by lower market footfall and the timing of promotional activity in Russia.
Mothercare also said last week that it remains in constructive dialogue with its financing partners with respect to its needs for FY19 and beyond, and continues to explore additional sources of financing to support and maintain the momentum of its transformation programme.
At 1000 BST, the shares were down 1.8% to 18.92p.