Burberry is on the hunt to find Chair's successor to revamp business
After replacing CEO Jonathan Akeroyd earlier this month, struggling Burberry is now working with headhunters to find a new Chair.
The luxury British brand is seeing a new board member who could take over from Gerry Murphy, according to Sky News.
A timetable for the chairman's departure has yet to be established, but sources said the search process amounted to an "indirect hunt" for Gerry Murphy's successor.
One source said: "They have been pretty explicit that the job is available for the right person."
Burberry ousted Akeroyd earlier this monthwith immediate effect "by mutual agreement with the board of directors". He was replaced as Chief Executive by former Michael Kors Boss Joshua Schulman, who stepped into the role on 17 July.
Burberry unexpectedly warned it would record a first-half operating loss if retail sales continue to fall at the current pace. It said full-year earnings will also be lower than expected, causing shares to drop by 11% soon after.
Burberry isn’t the only luxury company facing declining revenues as the sector slumps. This week, Kering published its financial report for the first half of 2024. It revealed revenue was down by 11% to £7.5 billion (€9 billion) following a failed attempt at revitalising its star brand Gucci.
Gucci reported an 18% drop in sales to £3.4 billion (€4.1 billion), which outweighed Yves Saint Laurent’s 7% dip to £1.1 billion (€1.4 billion).
On Wednesday, shares in Burberry closed at £7.04, after slumping by 16% on the day Akeroyd was appointed.
In May, the fashion house revealed its pre-tax profit plummeted 40% to £383 million for the year ending 30 March 2024, while underlying earnings were 34% down year-on-year.
