Mothercare has announced that Mark Newton-Jones has stepped down as CEO of the retailer, effective today (22 January).
He will continue as an executive director until July 2020, as the group works to complete its “transformation plan”. Newton-Jones also agreed to act as a non-executive director following this.
The group said that “management needs and requirements are evolving as we become a focused international franchise operation”.
Its transformation plan includes initiatives to “move forward as a profitable international franchise operation, generating revenues through an asset light model, operating in over 40 international territories”.
It comes after Mothercare announced it was to cease all UK trading, leading to 2,800 job losses in the UK.
Glyn Hughes, who acted as chief financial officer during the group’s restructuring period, will now act as interim chief executive officer with immediate effect.
Andrew Cook will also join the main board as chief financial officer. The group said that Cook is a “highly-experienced, results-oriented finance executive having successfully transformed business profitability across a number of sectors”.
In its latest announcement, the group also said it was “on track” with finalising “detailed contractual arrangements” with Boots, who is set to become the exclusive franchisee of the Mothercare brand for the UK.
Clive Whiley, chairman of Mothercare, said: “As we approach the completion of our Transformation Plan, Mothercare – one of the leading global brands for parents and young children – once more has a brighter future ahead as a solvent and cash generative Group.
“We have made good progress with the Transformation Plan and the risks to achieving the outcomes we laid out in November are increasingly dissipated.”
He added: “The board changes announced today align the management of Mothercare with that of its new structure as an international franchise brand and will contribute to a further overhead reduction.
“In time we plan to add relevant skills and expertise, particularly in brand and product management, to the team to accelerate our development as an international brand owner and operator.”