Mothercare boss steps down after just five months in charge

Mothercare’s boss has resigned with immediate effect after less than five months in the job, amid continued turmoil at the maternity products retailer.

Daniel Le Vesconte became chief executive in mid-January, making him the first person to hold the post since Mark Newton-Jones left in early 2020.

He arrived soon after the company declared a significant slump in half-year profits and revenues following its exit from Russia, where it earned between a fifth and a quarter of its global retail sales.

Mothercare reported in May that retail sales by franchise partners declined by £63million to £322million in the last financial year.

At the same time, the firm announced discussions were taking place with its lender to either refinance, vary or renegotiate a debt facility due to recent interest rate hikes and warned it could need waivers to future covenant tests.

Le Vesconte came to Mothercare from casualwear retailer Abercrombie & Fitch, where he spent three years overseeing the group’s brands, which include Hollister and Gilly Hicks, across Europe, the Middle East and Africa.

He has also held senior roles at bootmaker Dr Martens, Hush Puppies owner Wolverine Worldwide and California-based skateboarding apparel company Vans.

No explanation was given for his departure. Mothercare’s chairman Clive Whiley and chief financial officer Andrew Cook will continue to run the business until a successor for Le Vesconte is appointed.

Whiley told investors: ‘The board believes that a change in CEO is in the best interests of the company and its shareholders.

‘The board is fully committed to the group’s successful long-term strategy and, further to last month’s pre-close trading update, the company continues to perform in line with expectations.

‘In addition we are progressing a number of options to refinance the group’s debt facilities.’

Mothercare has endured a prolonged period of difficulty, with its UK business falling into administration in 2019 after its high street operation endured years of struggle caused by stiff competition from supermarkets and online retailers.

All its British shops were subsequently closed, but the business soon struck a deal to sell its products in Boots stores and continued to supply hundreds of franchised outlets overseas.

However, the Covid-19 pandemic sent turnover plummeting despite a surge in online trade, after lockdown restrictions forced many retail stores to temporarily shut.

Demand did recover significantly as trading curbs were loosened, with the group returning to a £12million profit in the 12 months to March 2022, having recorded a £21.5million loss the prior year.

Mothercare shares were flat at 5.63p on Friday morning, although they have lost over 97 per cent of their value in the past decade.