Reed boss goes out the door smartish

13 April 2012

AUSTIN Reed's chief executive Roger Jennings is the latest retail scalp to be claimed after a tough Christmas.

Jennings has resigned 'with immediate effect' and is in line for a £200,000 payoff. The clothes chain has hired headhunters to find a successor.

As with Marks & Spencer clothing chief David Norgrove, who was sacked on Wednesday, Jennings was seen as a nuts-and-bolts man rather than a great retailer.

Underlying sales fell 11.3% for the 22 weeks until January and were down 5.2% in total. Gross margins 'will be slightly lower' than last year. Analysts have already slashed earnings forecasts from £5.5m to less than £1m after a profit warning in November.

Bid speculation will help support the shares. Clothing entrepreneur Shami Ahmed is seen as a potential predator. He has rights to a 9.6% stake at Austin Reed and a large chunk of Moss Bros shares.

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