Mothercare Replaces CEO as it Struggles with Debt and Profitability

 Mothercare has announced today that it has replaced its chief executive officer.

David Wood replaces Mark Newton-Jones, who will now leave the company as CEO with immediate effect.

Mr Wood was previously Group President of US retail giant Kmart, where he successfully transformed the business and returned it to sustainable profit growth.

Mr Newton-Jones has been in charge of Mothercare since July 2014. Originally appointed as interim CEO, Mr Newton-Jones had been tasked with transforming it into a profitable business. During the last four years, a hostile takeover bid was fought-off, capital was raised to clear debts and refurbish stores. However, the retailer is in debt again and it stores failing to perform, even after refurbishment.

Prior to this, David Wood held a number of senior commercial, marketing and general management positions at Tesco where he achieved similar results in the UK and internationally. Mr Wood will join the Board as an executive director.

The CEO stated, “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.”

David Wood will be paid a base salary of £430,000, any additional bonuses and benefits will be paid in line with Mothercare’s remuneration policy. Mark Newton-Jones salary was £618,120 in fiscal year ending 2017, according the Mothercare plc’s Annual Report and Accounts 2017.

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