Mothercare silent on takeover claim

Retailer Mothercare was today staying mum over growing speculation former Bhs boss Terry Green was set to take over as chief executive.

Press reports said Mr Green was close to finalising a deal with the maternity and baby goods chain which would see him take on the top job.

In addition, he and his new management team will receive a 12.5% stake in the business in return for a substantial investment.

The role came up last month when former incumbent Chris Martin left with immediate effect after a sales warning wiped a fifth off the firm’s share price.

Chairman Alan Smith also quit to be replaced by Ian Peacock, non-executive chairman of MFI Furniture.

But a spokeswoman today refused to discuss the group’s search for a new chief executive.

"The search is under way, Mothercare is looking at a number of candidates but it’s a confidential process," she said.

However, she conceded that the hunt was moving "very quickly" and was "well advanced".

Mr Green is one of the UK’s most experienced retail executives and stood down as Bhs chief executive after a successful period at the helm.

He left by mutual consent at the end of June "to pursue other interests in the retail sector".

Mr Martin became Mothercare chief executive in May 2000 when it was split from Bhs by parent company Storehouse.

Its fortunes had been on the rise until problems at a distribution warehouse in Daventry, Northamptonshire, hit stock availability in the run up to the key Christmas trading period.