19th Apr 2018 11:42
LONDON (Alliance News) - Mothercare PLC said Thursday that Non-Executive Chairman Alan Parker has retired with immediate effect. The children's retailer said Clive Whiley has been appointed interim executive chairman.
Whiley has been the chief executive officer of Grand Harbour Marina PLC since 2013. He also serves as the chief executive officer and managing director of Evolution Securities China Ltd.
Whiley has been a director of Grand Harbour Marina since 2013, Stanley Gibbons Group PLC since 2016, and Camper & Nicholsons Marina Investment Ltd since 2012.
Parker has been chairman of Mothercare since 2012.
He was formerly chief executive of Whitbread PLC and managing director for Europe, Middle East and Africa for Holiday Inn.
This is the second senior executive of Mothercare to leave this month. David Wood replaced Mark Newton-Jones as chief executive, with Newton-Jones stepping down after four years in the role at the beginning of the month.
The changes comes as the baby product retailer is mulling the decision to shut 47 of its 143 stores.
Mothercare recently announced its poor sales performance for its fourth quarter. They said reduced UK footfall led to declining total sales in its fourth quarter, though sales did increase online.
In the UK, total sales for the company's fourth quarter, which ended March 24, fell 5.6% year-on-year, and on a like-for-like basis they were down 2.8%. In the year-to-date, UK sales were down 4.8% and 1.3% like-for-like.
However, in the quarter, website sales rose 7.2% like-for-like, and were up 2.8% year-on-year, while total online sales were up 2.1% in the period and 1.2% year-to-date.
CEO Wood 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."
Parker added: "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."
Whiley said: "I am pleased to have been invited to become interim executive chairman of Mothercare, a business with an undoubted heritage and an exciting future both in the UK and internationally. Given the pressures the business is under, I greatly value the support already shown to me and the business by our financing stakeholders - including our shareholders, banking partners and pension fund trustees - and I will work tirelessly for them to return this business to its rightful place.
"Working with the team in Watford and our franchise partners around the world, I will endeavour to return Mothercare to a sound financial footing and deliver a successful plan to improve performance on behalf of all of Mothercare's stakeholders."
Shares in Mothercare were trading down 1.8% to 18.93 pence each.
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