Mothercare boss in surprise departure - UPDATE

24th Feb 2014 07:45

The Chief Executive of Mothercare has stepped down less than two years after he joined the troubled baby goods retailer, leaving it searching for a new boss.Simon Calver, who joined the group in April 2012 and launched an overhaul of its struggling UK business, is leaving Mothercare at the end of this month.Mothercare praised him for his efforts to improve the company's online business but declined to comment on the reasons for his departure.It is thought Calver had faced pressure to make more progress in improving trading and profits in its UK operation.The retailer has unveiled plans to cut its number of UK stores from 311 to 200 by 2015 and axe 830 staff.In a statement, Mothercare did not say why Calver was going, but said it was starting a search for his replacement immediately.However, the group warned on annual profit ­earlier this month after UK Christmas trading took a hit from parents buying their children smartphones and other electronic devices rather than traditional toys.UK trading also faced price-cutting to shore up sales in a tough market and a decision not to repeat last year's offer of free delivery for online products.The group's international arm, which has been doing better than the UK business, had to deal with currency volatility and lacklustre trading in Russia.Calver will receive £250,000 payment in lieu of six months' notice, together with £44,540 as compensation for contractual benefits including pension contribution, offset against any payments he receives for any future employment or appointment he accepts in the notice period.He will not get a bonus payment for 2014 and the proportion of the 2013 bonus awarded as deferred shares will lapse. Calver was entitled to 12 months' notice under his service agreement.Chairman Alan Parker said Mothercare had made progress in its turnaround efforts since Calver joined, particularly in online retailing."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 chief executive is underway."PW