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Mothercare chief Simon Calver quits Mothercare chief Simon Calver quits
(about 4 hours later)
Mothercare boss Simon Calver has resigned after less than two years in the role as the baby retailer continues to struggle. Mothercare chairman Alan Parker has shown chief executive Simon Calver the door less than two years into the job following a disastrous profit warning last month after he instigated huge and ill-judged discounting in the build-up to Christmas.
Calver's exit as chief executive with immediate effect comes six weeks after the company issued a profits warning due to poor Christmas trading in the UK. Calver’s resignation was today announced, and he  will walk away with almost £300,000, including £250,000 in lieu of his six-month notice period and a £44,540 pension payment.
Calver was a surprise choice to run the baby products retailer in April 2012 after seven years at the helm of internet movie rental firm LoveFilm. Parker said: “Simon Calver’s e-commerce expertise has allowed Mothercare to accelerate its development as a multi-channel retailer in the UK.
He has overseen a major store reduction programme but the company, which includes the Early Learning Centre, has struggled to revive profitability in the face of fierce competition from supermarkets and online retailers. "We wish him well in the future. Mothercare has a strong executive management team which is very capable of running the business in the interim while the search for a new CEO is under way.”
Mothercare gave no reason for Calver's resignation but stressed that there has been no change in the company's trading position or strategy. The chairman and City grandee also saw previous chief executive Ben Gordon leave by mutual consent in 2012.
The rest of Mothercare's executive team will take on the running of the business while the search for Calver's replacement takes place. Calver said: “Although there is more to do, I feel the time is right for somebody else to take up the challenge as I pursue other opportunities. I believe Mothercare is fortunate to have an outstanding team in place and I wish the company well in its future endeavours.”
Chairman Alan Parker said Calver had made progress in implementing the company's turnaround programme. The board begin its search for a new boss today. Calver will stay in a transitional role until the end of March.
He added: "In particular, Simon Calver's e-commerce expertise has allowed Mothercare to accelerate its development as a multi-channel retailer in the UK. Mothercare has spent several years losing customers to rivals, and Calver was brought in to improve the company’s woeful website. However, sources suggested he was kicked out for having limited ability for driving the bottom line after January’s profit warning.
"Mothercare has a strong executive management team which is very capable of running the business in the interim while the search for a new chief executive is under way." He had started a three-year turnaround plan to see the UK turn a profit for the first time in years, but his plans were seriously dented last month  after profit guidance for the group was halved to £8 million.
Calver's contract entitles him to £250,000 in lieu of six months' notice.  
The group, which has around 230 stores under the Mothercare and Early Learning Centre brands, made a loss of £21.7 million in the UK during its most recent financial year.
Last month, analysts said they expected a deficit of around £18 million in the current year to the end of March, although stronger trading by international franchise stores meant the company was still set to make a profit.
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