'Ultimatum for Vandevelde'

TALK of a boardroom rift at troubled retailer Marks & Spencer is growing. Part-time chairman Luc Vandevelde is believed to be facing an ultimatum from fellow directors to commit more time to the firm or quit.

One director described him as 'totally detached'. The board is said to be considering appointing headhunters to find a replacement.

Directors are unhappy because of Vandevelde's long list of outside interests at a time when the retailer's recovery has spectacularly derailed and chief executive Roger Holmes needs support.

Last week, M&S revealed that fourth-quarter sales of clothing and general merchandise slumped 5.2%, with even food in the doldrums.

Since stepping back as a full-time executive, Vandevelde has founded private equity firm Change Capital Partners, which recently bought ironmongers chain Robert Dyas. He is also a non-executive at Vodafone and French supermarkets group Carrefour.

Some M&S shareholders have voiced concerns over Vandevelde's outside interests.

But the company denied that he faced any ultimatum. 'It's pure speculation. The board believes Luc is spending absolutely the right amount of time to do the job.'