MOTHERCARE’S UK boss is to leave the baby products retailer as part of a management shake-up to stem falling sales at its troubled UK arm.
The retailer said yesterday that Mike Logue, who moved to Mothercare from Asda in late 2011, is to step down next month after the role was made redundant.
The restructure is part of a three year turnaround plan being led by chief executive Simon Calver, who joined from Lovefilm in April last year, to return the UK business to profitability and revive sales.
Mothercare’s UK stores open for at least a year saw sales fall 5.9 per cent in the third quarter to 12 January after improvements made to products and ranges failed to pull in the Christmas sales.
Calver will now play a more direct role in the UK business and is also looking to hire a commercial director who will report directly to him.
In the Autumn the firm appointed former Argos finance director Matt Smith as its new finance chief and Nick Henwood from Sainsbury’s as director of retail operations.
Calver said yesterday: “We would like to thank Mike for his contribution to developing and starting the implementation of our transformation and growth plan.”
Logue’s departure came as the company revealed that Mothercare Australia – a retailer in which it has a minority stake – called in administrators after talks to sell the business fell through.
Mothercare said the Australian arm accounts for around seven per cent of international retail sales and that the impact on profits was expected to be “minimal and does not change our overall view of International profitability going forward”.
Shares fell 3p to 326p yesterday.