Chief exec quits at Laura Ashley
TROUBLED fashion retailer Laura Ashley has parted company with chief executive Ainum Mohd-Saaid, the second top senior executive to quit in less than two months.
The company said Mohd-Saaid was stepping down for 'personal reasons' and will be replaced by Lillian Tan, currently a non-executive director and also the chief executive of Malaysian retailer Metrojaya Berhad.
Mohd-Saaid follows fellow joint chief executive Rebecca Annapillai in walking the plank at Laura Ashley. Annapillai resigned in November. Both were appointed as joint chief executives in June 2003, having risen to prominence in Malaysia, where Laura Ashley's biggest shareholder, Malaysian United Industries, is based. Mohd-Saaid was the country's former attorney-general while Navarednam worked in banking, having previously worked as a finance director in the UK.
Today's announcement is bad news for Laura Ashley, which has been struggling to turn around its loss-making clothing and furnishings business for some time and to create a better impression in the City.
The company refused to elaborate on the reasons for Mohd-Saaid's departure but said there would be 'no pay-off'. Falling sales in Europe and widening losses have continued unabated, meanwhile, sparking a further loss of confidence in the City.
Analysts continue to express concern about the lack of independent non-executive directors at the company and rolled their eyes at the latest bad news. 'To lose one chief executive is bad enough, to lose two begins to look much worse,' said one City commentator familiar with the company.
Besides Malaysian United, Laura Ashley is 24% owned by Bonham Industries Limited, the private vehicle of chairman Dr Khoo Kay Peng. Last September the retailer revealed an increase in interim pre-tax losses to £1.2m after a 36% slump in fashion sales. It is expected to publish a Christmas trading update on 20 January.
Broker Seymour Pierce reiterated its 'underperform' stance on the stock adding that the company has also parted company with its head of design.
