19th Feb 2015 09:56
LONDON (Alliance News) - Wine retailer Majestic Wine PLC Thursday announced that Chief Executive Steve Lewis is stepping down as CEO and retiring from the board with immediate effect, as the company looks to hand over to a new leader to drive its next phase of development.
After 29 years at the business, the last six years of which were at the helm as CEO, the retail chain said that "now is the best time" to clarify the timing of Lewis' succession.
"Majestic Wine is entering a crucial stage of its development during which the business intends to further capitalise on its core strengths; a nationwide store and distribution network, diverse and interesting product choice and exceptional customer service, to further develop a leading multichannel offer whilst continuing to grow its successful Commercial and Fine Wine sales channels," the company said.
Finance Director Nigel Alldritt will become interim CEO until a permanent replacement has been found. Alldritt has been on the board for the last 13 years. Majestic Wine said a "thorough review" of potential candidates for permanent CEO is now underway.
"[Lewis] took the helm in 2008 in the midst of the credit crunch and subsequent recession and successfully steered the business through very difficult times. He leaves the business today in good shape, with sales up 41% and profit up 42% during his time as chief executive, and with the business well positioned for the next phase of its development," said Chairman Phil Wrigley.
Last month, the wine retailer saw it shares drop after it reported muted sales growth for the Christmas period and said it margins were coming under pressure from a higher-than-expected level of promotional pricing activity. Brokers took a negative view on the trading update, with forecasts cut and ratings put under review.
Majestic Wine shares were trading 4.3% higher at 344.25 pence Thursday morning following the announcement of Lewis' departure.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
MJW.L