McGeorge to step down as Matalan chief executive
Thursday 30 September 2010
Alistair McGeorge is to step down as the chief executive of Matalan after four years at the helm, becoming the latest senior executive to leave the value fashion and homewares retailer.
Mr McGeorge is understood to have quit earlier this month and will start to relinquish his chief executive responsibilities from the end of October.
At this point, Matalan's finance director Paul Gilbert will take on more of the day-to-day management of the business. In further developments, Amin Kassam, Matalan's retail director, is also believed to be heading for the exit.
The two departures would be a blow for Matalan, which is still smarting from Primark poaching its buying director, John Lyttle, this summer. Matalan declined to comment yesterday.
Mr McGeorge, who previously ran the Littlewoods retail group, will remain at the 203-store retailer until about January by which time Matalan hopes to have hired a replacement. However, he may remain as a non-executive director at Matalan.
The retailer has continued to grow its profits and sales this year. For the year to 27 February, Matalan grew its underlying operating profits by 30 per cent to £132.9m. But Matalan was forced to pull a sale of the business in February. Private equity firms baulked at the lofty £1.5bn price tag put on Matalan by its founder John Hargreaves, whose family trust own 100 per cent of the retailer's shares.
Instead, Matalan – which Mr Hargreaves founded in 1985 – subsequently completed a £525m refinancing. This enabled Mr Hargreaves, a billionaire who is based in Monaco, to pay himself a special dividend of about £250m.
While Matalan's staff received a payment following the refinancing, Mr McGeorge would have netted a far bigger payout from a sale of the chain.
While this is likely to have been a factor in McGeorge's decision to quit, the exact reasons for his departure are unclear. But sources suggested that Matalan is mulling a flotation next year and they did not see eye-to-eye on this issue.
- 1 Man on naked bike ride gets ejected after becoming aroused
- 2 Charles Kennedy 1959-2015: A gifted, compassionate politician whose career was cut short by the 'demon drink' - latest news
- 3 Ann Summers survey reveals the UK's favourite sex position
- 4 Jaden Smith wears gender fluid dress to high school prom with Hunger Games actress
- 5 How much sex should I be having?
Ed Miliband returns to the backbenches but it's all a bit awkward as he tries to avoid eye-contact with fellow Labour MPs
Man on naked bike ride gets ejected after becoming aroused
Charles Kennedy 1959-2015: A gifted, compassionate politician whose career was cut short by the 'demon drink' - latest news
Ayyan Ali: Pakistan's top model now appears in the courtroom rather than on the catwalk
Isis tortures 14-year-old Syrian boy and films it in graphic video for 'propaganda purposes'
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Why this year's general election was the most unfair in Britain's history
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...