Mothercare chief executive Ben Gordon is stepping down, just days after a profit warning wiped nearly a third off the market value of the baby product and toy retailer.
And the reaction of investors to his departure? A near 9% rise in the retailer's shares, up 17p to 209.5p. Gordon had been responsible for the company's successful overseas expansion, but its core UK business has been increasingly hit by competition and the poor consumer environment.
The company is looking for a replacement for Gordon, who will go on November 17 at the time of the half year results. In the interim, the executives will report directly to chairman Alan Parker. Atif Latif, director of trading at Guardian Stockbrokers, said:
The management change allows a shift of strategy that should appease investors that have stayed invested with a company that has much more to offer than what is being reflected in the share price.
