Mothercare PLC (LON:MTC) said it has appointed David Wood as its new chief executive officer (CEO) with immediate effect.
The mother and baby products retailer said the appointment was in line with the company’s transformation plan and its aim to return to growth.
READ: Mothercare says talks with lenders “progressing constructively”, financial covenant tests deferred
Wood, who will be replacing outgoing CEO Mark Newton-Jones, joins the company from US retail and pharmaceutical business Kmart Holding Corp, where he was group president for three years. Prior to that, he was part of FTSE 100-listed retailer Tesco PLC (LON:TSCO) for eight years, leaving as managing director of the Health and Wellness division for a year from 2014 to 2015.
The appointment follows an unstable period for the company, which included a profit warning issued on 2 March 2018 in which it expected full-year profit to be at the low end of reduced guidance after revealing a disappointing Christmas performance when its UK performance was particularly weak.
Later that month, Mothercare said it anticipated a rise in borrowings for the financial year 2019 and that it would require waivers of certain financial covenants. The company later said lenders had deferred the testing of financial covenants due on March 24.
Mothercare was one of the few survivors of a March that blighted the high street with several high-profile retail collapses, with Toys R Us announcing it would close all of its UK stores after the US firm entered into administration in February, and privately-owned electronics retailer Maplin going bust.
Alan Parker, chairman of Mothercare, said: “Our transformation strategy is focused on improving the performance of the group in the UK and internationally, ensuring Mothercare has the best store format, digital capabilities and customer offer as well as several actions to reduce central costs.
Number one choice for parents
He added: "David has a great track record in similar circumstances across international and consumer facing brands and is a highly effective operator of retail operations. I look forward to working with him and the team."
David Wood, chief executive, commented: "I am delighted to be leading Mothercare, a business with a fantastic heritage and an exciting future both in the UK and internationally. My immediate focus is to ensure Mothercare is put back on a sound financial footing and deliver a successful plan to improve performance.
“Central to this will be our customers and their experience, securing Mothercare's reputation as the number one choice for parents. I look forward to working with the Board and with the management team to deliver on our plans" he added.
Mothercare shares were down 1.4% at 18p in mid-afternoon trading Wednesday.