Carpetright crisis forces Harris return
Saturday 05 October 2013
Lord Harris of Peckham has come out of retirement to take over the running of Carpetright after an unexpected profit warning and the shock resignation of Darren Shapland, the chief executive.
The company that Lord Harris, 70, founded 25 years ago admitted profits would fail to meet expectations because of slowing sales across the business, especially at UK stores outside London and the South-East as well as in its European division.
Lord Harris, who retired as chief executive 17 months ago, said: “I had been enjoying retirement, so it’s a surprise to be back, but I’ve still got the enthusiasm to do the job.”
The Conservative party donor and school philanthropist said he would run the company for about 18 months while looking for a permanent successor. Shapland is thought to be receiving a pay-off of £450,000 – a year’s salary.
Lord Harris said: “I was on holiday and received a call from our non-executive directors who said Darren was no longer committed to the company for the five years he had previously said, and asked me if I would take over.”
He added that there was no falling-out between the two sides, and the resignation and profit warning were unrelated. Mr Shapland joined from Sainsbury’s, where he had been group development director and previously chief financial officer. He had already worked for Carpetright as finance director for three years. The company’s stores were revamped in the hope of turning around its fortunes. It also started selling beds and launched an improved online presence.
However, it appears the turnaround would take too long for Shapland to see it through.
Retail analyst Nick Bubb said: “I guess Darren thought he would be able to preside over a great profit recovery before going off to do something else and it dawned on him that it would be a long haul.”
- 1 Unseen Charlie and the Chocolate Factory chapter deemed 'too subversive' released
- 3 Joan Rivers: 'Palestinians deserve to be dead'
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 Mexican woman becomes world’s 'oldest person' at 127
Israel-Gaza crisis: YouTube footage shows scale of destruction after 50 days of shelling
iPhone 6 'hidden code' could indicate sharper screens or bigger phones
Keira Knightley topless: Conservative actress does own take on #Freethenipple campaign for Interview Magazine
Joan Rivers: 'Palestinians deserve to be dead'
Ebola virus: It's ripped through towns – now the deadliest ever outbreak of the virus is heading for Africa's teeming cities
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
iJobs Money & Business
£40000 - £45000 per annum: Ashdown Group: An established professional services...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£28 - 32k + Uncapped Commission: Guru Careers: A Business Development Manager ...
£40000 - £70000 per annum + Bonus+Benefits+Package: Harrington Starr: C# .NET ...