Vandevelde is staying: M&S

MARKS & Spencer has moved to squash speculation Luc Vandevelde, its Belgian boss, is poised to step down as chief executive.

Rumours had been mounting that Vandevelde, who is also chairman, would announce next week that he was quitting the chief executive role. Press reports said he would continue as chairman while Roger Holmes, managing director of UK retailing, would take over as chief executive.

But M&S said the board did 'not intend to make any announcements about the leadership of the company at this time'.

Vandevelde added: 'We are still in the early stages of recovery and the board believes that it is vital the company keeps to its carefully orchestrated plan delivered in a logical sequence.'

However, he also conceded: 'The board is conscious of the need to continuously adapt the organisation's structure to meet business priorities and, as such, will consider any structural implications as and when it is appropriate.'

Vandevelde joined M&S as chairman two years ago, charged with turning round the retailer's fortunes after a sharp slump in sales and profits.

He has since sold non-core businesses, switched the focus back to the UK from overseas expansion and introduced new ranges, including the Per Una line designed by George Davies.

In January, the retailer reported its best festive season for years. Underlying sales jumped 8.3% in the seven weeks to January 12 and M&S will update the City on trading again on April 9. It will post full-year figures on May 21 and Vandevelde said the group would use this 'to outline the next phase of our plan'.

At the time of his appointment, Vandevelde said he would quit M&S if he was unable to significantly improve the business within two years.

He was originally bought in as chairman but took on the chief executive role as well six months later when Peter Salsbury resigned.