Company of the week: Marks and Spencer
Sunday 28 February 1999
Derek Hayes, European director, Chris Littmoden, American director, and John Sacher, who heads the company's information-technology and logistics division, will take early retirement on 31 May, the company said.
The move comes as part of a wider reorganisation by the company led by its new chief executive, Peter Salsbury, to revive slumping profits. The removal of Mr Hayes and Mr Littmoden raises questions over the future of M&S overseas operations, including its US chain, Brooks Brothers.
"The main thrust of this is that they need to clear up the UK business first and won't want too many distractions outside the UK," said William Cullum, an analyst at Paribas, who currently rates the shares a "sell".
The company's shares, which dropped to a five-year low last month after M&S warned that fiscal 1999 profits will fall almost 50 per cent, rose 11 per cent on the week as investors saw the move as the company attempting to break with its past and the previously staid culture.
M&S, whose earnings growth was once regarded as reliable as the clothes it sells, forecast the drop in profits after Christmas sales fell short of expectations. The company has struggled outside the UK.
The announced changes "will enable us to be better focused and thus move strongly forward again," said chairman Sir Richard Greenbury. Mr Salsbury took over as chief executive on 1 February after Sir Richard resigned from the day-to-day management role. In his first attempt to address the company's problems, Mr Salsbury said last month M&S would eliminate two senior executive positions and create three units to oversee UK retailing, overseas retailing and financial services.
- 1 Rice Bucket Challenge: India's take on the Ice Bucket Challenge 'for Indian needs'
- 2 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 Rubble Bucket Challenge: Ice Bucket Challenge adapted in solidarity with Gazans whose homes have been destroyed in conflict
- 5 Teenager dies after suspected ice bucket challenge goes horribly wrong
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
Matt Damon uses toilet water in ice bucket challenge to stress sanitation issues in developing world
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Rubble Bucket Challenge: Ice Bucket Challenge adapted in solidarity with Gazans whose homes have been destroyed in conflict
Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Air strikes? Talk of God? Barack Obama is following the jihadists’ script after James Foley beheading
- < Previous
- Next >
iJobs Money & Business
£23000 - £26000 per annum: Ashdown Group: Account Executive / Client Services ...
£36000 - £38000 per annum: Ashdown Group: Executive PA to CEO & Executive Dire...
£25000 - £28000 per annum: Ashdown Group: Generalist HR Administrator - Tunbri...
£45000 - £75000 per annum + benefits+bonus+package: Harrington Starr: Senior C...