Mothercare Appoints Former Tesco Executive As Chief Executive

4th Apr 2018 10:05

LONDON (Alliance News) - Mothercare PLC said Wednesday that it has appointed David Wood as chief executive officer with immediate effect, in line with the company's transformation plan and aim for a return to growth.

Wood will replace Mark Newton-Jones, who has stepped down after four years in the role since 2014, the baby products retailer said.

Wood will be joining from US retail and pharmaceutical business Kmart Holding Corp, where he was group president for three years since 2015. Prior to that he was a part of FTSE 100-listed retailer Tesco PLC for eight years, leaving as managing director of the Health and Wellness division for a year from 2014 to 2015.

"Mothercare is a great brand with a great future but it is facing a number of challenges, not least a highly competitive retail environment. Our transformation strategy is focused on improving the performance of the group in the UK and internationally, ensuring Mothercare has the best store format, digital capabilities and customer offer as well as several actions to reduce central costs," said Chairman Alan Parker.

"David has a great track record in similar circumstances across international and consumer facing brands and is a highly effective operator of retail operations. I look forward to working with him and the team," Parker added.

In March, Mothercare said it anticipates rise in borrowings for the financial year 2019 and that it would require waivers of certain financial covenants. The company later in March said lenders have deferred the testing of financial covenants due on March 24.

Shares in Mothercare were down 2.3% at 17.84 pence on Wednesday.

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