Debenhams CFO carries can for poor performance
Simon Herrick, the chief financial officer (CFO) at Debenhams, has stepped down just two days after the department store chain issued a post-Christmas profit warning.
Herrick, who receives a basic annual salary of £410,000, had been under pressure after he asked suppliers for a discount on goods eight days before Christmas.
In a letter he sent to suppliers, he wrote: “As we will mutually benefit from the growth of Debenhams we are now seeking a contribution from our suppliers to support our commitment to on-going investment.”
An additional discount of 2.5% applied to all open orders on our system at close on December 17…This is a contribution and not a permanent amendment to your trading terms with Debenhams,” the letter said.
Earlier this week and after it was clear that the last minute Christmas shopping surge had failed to materialise, Debenhams lowered its profit outlook.
The retailer revealed an £85m profit for the 17 weeks to December 28 - way off the £114.7m in the same period last year.
It blamed the poor performance on...