Woolworths to part company with CEO
Published : June 2008
The chief executive of troubled high-street variety retailer Woolworths has been axed as sales and share prices continue to plummet
Described by the Times as “One of the most likeable men in retailing (and) one of the most hardworking”, Trevor Bish-Jones will leave his £503,000 per-year role with a further half a million pound pay-off in three months, during which time he will help the board in appointing his successor.
Chairman Richard North said: “You reach a point in a business when it makes sense to have someone new come in and take a fresh look. It is also good for the individual to move on to pastures new.”
He went to express his gratitude for “some really great stuff” done by Bish-Jones in his six years of service.
Woolworths’ shares are down from 27p a year ago to 9.27p at the close of business yesterday and continue to drop at the time of writing. The company has suffered a 2.2 per cent decline in like-for-like sales, with a 1.9 per cent downfall in the 19 weeks to June 14. Profits are expected to be hit further by the current ‘Price Drop’ campaign running in high street stores.
North remained optimistic on Woolworths’ future fate however, adding: “I am very glad we are a value based retailer… that is a better part of the market to be in.”
The Financial Services Authority added to Woolworths’ woes last week, fining it £350,000 for failing to disclose details of a shortfall deal with Tesco.
The family orientated retailer of all manner of clothing, gifts, entertainment, furniture and disposables first began UK trading in 1909, after its founder expanded its original operations in the US to this side of the Atlantic. For all its problems, exasperated by a declining retail market overall in the face of the credit crunch, the chain is in danger of witnessing its status, as a veritable landmark of traditional British high street trading, fade into nostalgia.
Woolworths will look both internally and externally to source Bish-Jones’ replacement. Front runners are thought to include the CEO’s current deputy - executive director Tony Page - and the EUK (Entertainment UK ltd) chief, Steve Lewis.
