Storehouse shares leap as Edelman resigns

STOREHOUSE, THE troubled owner of BhS and Mothercare, yesterday announced the resignation of Keith Edelman, the chief executive, a week after the group reported a 20 per cent slump in profits and the closure of 68 Mothercare stores.

Storehouse's shares jumped 7 per cent in response to the news, to close at 118p. Mr Edelman, whose pay-off is expected to be between pounds 500,000 and pounds 600,000, presided over a dramatic collapse in the share price. When he took over in 1993, it stood at 212p. Yesterday, before news of his resignation, the shares opened at 110.5p - a 48 per cent decline.

Alan Smith, the current chairman, will become executive chairman and take responsibility for day-to-day running of the company until a replacement is appointed.

In a Stock Exchange announcement, Mr Smith said: "It was mutually agreed that the time had come for Keith to relinquish his role as group chief executive."

Mr Edelman has come under fire recently, criticised by investors and analysts for a strategy which emphasised cutting costs at the expense of investment and growth.

One analyst said: "The problem's been his failure to increase like-for- like sales. The market's been tough but it's his own internal strategy which is to blame. Hopefully new blood will bring about a new strategy."

Sources close to the company said that Mr Edelman's departure had long been on the cards. "The board has been concerned about the growing credibility gap represented by the weak share price. Following the results announcement last week it was decided that new leadership was required," the source said.

His resignation, which provoked little surprise, was welcomed but analysts pointed out that the company's fundamental difficulties remained unchanged.

"It's a mild positive that he's gone, he did an appalling job, and it's absolutely predictable that the share price would go up but it doesn't change any of the fundamentals surrounding the group. These are two very different businesses with very different problems," an analyst said.

Nick Bubb, retail analyst with SG Securities, added that it would be difficult to attract a calibre candidate to replace Mr Edelman. "It wasn't an easy job five years ago and it's not an easy job now. Middle-market, middle-position brands are being squeezed from both ends.

Outlook, Page 21

Start your day with The Independent, sign up for daily news emails
Bafetibis Gomis of Swansea City is stretchered off at White Hart Lane
Jerry Seinfeld Comedians in Cars Getting Coffee
peopleSitcom star urges men to be more supportive of women than ever
Life and Style
Living for the moment: Julianne Moore playing Alzheimer’s sufferer Alice
Jay Z
businessJay-Z's bid for Spotify rival could be blocked
footballLouis van Gaal is watching a different Manchester United and Wenger can still spring a surprise
The spider makes its break for freedom
ebooksA special investigation by Andy McSmith
A propaganda video shows Isis forces near Tikrit
voicesAdam Walker: The Koran has violent passages, but it also has others that explicitly tells us how to interpret them
Arts and Entertainment
Ashley Young celebrates the winner for Manchester United against Newcastle
footballNewcastle v United player ratings
Life and Style
love + sex
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Graduate Application Support Analyst

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Reach Volunteering: External Finance Trustee Needed!

Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...

Christine McCleave: FP&A Analyst

£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...

Recruitment Genius: Sales Executive - OTE £40,000

£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...

Day In a Page

War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable
Living with Alzheimer's: What is it really like to be diagnosed with early-onset dementia?

What is it like to live with Alzheimer's?

Depicting early-onset Alzheimer's, the film 'Still Alice' had a profound effect on Joy Watson, who lives with the illness. She tells Kate Hilpern how she's coped with the diagnosis
The Internet of Things: Meet the British salesman who gave real-world items a virtual life

Setting in motion the Internet of Things

British salesman Kevin Ashton gave real-world items a virtual life
Election 2015: Latest polling reveals Tories and Labour on course to win the same number of seats - with the SNP holding the balance of power

Election 2015: A dead heat between Mr Bean and Dick Dastardly!

Lord Ashcroft reveals latest polling – and which character voters associate with each leader
Audiences queue up for 'true stories told live' as cult competition The Moth goes global

Cult competition The Moth goes global

The non-profit 'slam storytelling' competition was founded in 1997 by the novelist George Dawes Green and has seen Malcolm Gladwell, Salman Rushdie and Molly Ringwald all take their turn at the mic
Pakistani women come out fighting: A hard-hitting play focuses on female Muslim boxers

Pakistani women come out fighting

Hard-hitting new play 'No Guts, No Heart, No Glory' focuses on female Muslim boxers
Leonora Carrington transcended her stolid background to become an avant garde star

Surreal deal: Leonora Carrington

The artist transcended her stolid background to become an avant garde star
LGBT History Month: Pupils discuss topics from Sappho to same-sex marriage

Education: LGBT History Month

Pupils have been discussing topics from Sappho to same-sex marriage
11 best gel eyeliners

Go bold this season: 11 best gel eyeliners

Use an ink pot eyeliner to go bold on the eyes with this season's feline flicked winged liner
Cricket World Cup 2015: Tournament runs riot to make the event more hit than miss...

Cricket World Cup runs riot to make the event more hit than miss...

The tournament has reached its halfway mark and scores of 300 and amazing catches abound. One thing never changes, though – everyone loves beating England
Katarina Johnson-Thompson: Heptathlete ready to jump at first major title

Katarina Johnson-Thompson: Ready to jump at first major title

After her 2014 was ruined by injury, 21-year-old Briton is leading pentathlete going into this week’s European Indoors. Now she intends to turn form into gold
Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot