Debenhams chairman Sir Ian Cheshire is to step down immediately after a rebellion by Sports Direct’s Mike Ashley and another shareholder, Dubai-based Landmark Group. Both had voted against his re-election to the board on the day Debenhams revealed slipping Christmas sales.
Chief executive Sergio Bucher was also removed from the board as a result of the votes of the same two shareholders, but will stay on in his role, reporting to the board. As has been widely reported, the incumbent management team has struggled to reverse the decline in the department store chain’s performance, which saw UK sales fall by 3.6 per cent over the critical Christmas trading period.
Sports Direct and Dubai-based Landmark Group hold about 38 per cent of Debenhams’s shares between them, with Sports Direct’s holding at just under 30 per cent. Ashley has been reported as being keen to acquire the Debenhams business in order to merge it with House of Fraser and create a stronger chain.
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