Launch of Beckham line fails to keep M&S childrenswear head in a job

Marks & Spencer signalled yesterday that it was still struggling to revitalise sales of its kids' clothing with the decision to part company with the head of its childrenswear department.

The high street retailer, which is trying to revive its fortunes after a dramatic fall from grace, is understood to have instigated Michèle Jobling's resignation in light of continued poor trading in its childrenswear department.

The move comes less than a fortnight after the group launched a high-profile new range of clothes for boys endorsed by David Beckham, the Manchester United football star.

Ms Jobling, who oversaw the group's Zip project, a joint venture with the Northern Irish supplier Desmond & Sons, had been with the retailer since December 2000. She was also behind the decision to sign Beckham, prompting speculation from some City quarters about the viability of the new boys range, which has been criticised as too expensive.

M&S said only that Ms Jobling had left to "spend more time with her husband developing property in France". The company said that it had yet to finalise her departure date or locate a replacement. Steve Longdon, who heads up womenswear, will oversee the Zip project, while Vince McGinlay will look after procurement issues during the search for a successor, it added.

A spokeswoman said it was "very well known" that it had "big problems" in childrenswear but added that initial sales of the Beckham-endorsed DB07 range had met expectations.

While City analysts remained relaxed about Ms Jobling's departure, shares in M&S fell 10.75p to 312p. Childrenswear accounts for about 10 per cent of the group's clothing sales and 5 per cent of group sales – the same as knitwear.

The retailer, which promoted Roger Holmes from managing director to chief executive as Luc Vandevelde reverted to the chairman's role, is due to update the market on second-quarter trading next week.

John Baillie, at SG Securities, said the group was expected to show that it was still taking market share, growing sales and improving its margins, with clothing sales likely to be about10 per cent higher.