Mothercare's interim CEO steps down as turnaround almost complete
Mothercare's interim CEO, Glyn Hughes has announced he will be stepping down from his role at the end of the month.
Since the start of this year, Glyn Hughes has been the company’s interim CEO and was previously Mothercare's finance director. The retailer said Hughes wants to “pursue other opportunities”, but did not disclose further details.
This will leave the retailer without a CEO, even on an interim basis, unless it can find a free agent at short notice.
Chairman of Motehrcare, Clive Whiley said: “We are making good progress with the search for our new permanent CEO and are now at shortlist stage."
"We continue to take action to reduce our cost base and address legacy issues, helping with our return to being a profitable and sustainable business".
Mothercare said the company would now be led by the chief operating officer and chief financial officer in close co-operation with its chairman.
Hughes leaves with a turbulent 12 months behind him. Administrators from PwC closed all 79 UK Mothercare stores last November, cutting 2,500 jobs. The UK arm of the business had been making a loss for some years.
Since, the retailer has re-focused on simply providing branded products to retailers. The company said it has “substantially completed our transition” to focusing on brand management and design.
The retailer also highlighted that its experience of going into administration in the UK last year “is proving invaluable” as it deals with the impact that Coronavirus will have on its franchisees around the world.
Around two-thirds of its partners’ stores have now reopened around the world.
It has also agreed to lease out some of its warehouse in Daventry to another company, and move into a smaller office, saving around £3.5 million on an annual basis.
On top of which the company remains in discussions with a number of prospective new debt providers regarding entering into new facilities and said it anticipated making further announcements in this regard in due course.
Shares rose 6.5% on the news on Monday morning.