New bosses prepare to overhaul M&S

The newly-appointed team at Marks & Spencer is preparing to begin work at the troubled high street giant today.

Former Arcadia boss Stuart Rose and Paul Myners, a non-executive director, were named yesterday as chief executive and interim chairman respectively.

In a dramatic move, they were announced as replacements for chief executive Roger Holmes and outgoing chairman Luc Vandevelde, who stepped down with immediate effect.

The changes were unveiled as entrepreneur Philip Green, who owns the Arcadia group, which includes Top Shop and Dorothy Perkins, and British Home Stores (Bhs), is expected to submit a bid for the company by the end of this week.

It had been claimed that the high street giant was lining up Mr Rose to fend off an expected £10bn (€15bn) takeover by the tycoon.

Mr Myners, who has been made interim chairman until a permanent appointment is made, said yesterday: “The board is very pleased to have somebody of Stuart’s experience and retail prowess to lead the company into the next phase of its strategic development.

“The board is grateful to Luc and Roger for putting in place many of the building blocks for the sustained recovery and growth of the business.”

The statement by the M&S board said Mr Rose brought a wealth of retail experience to the job and they believed he was “the ideal person to deliver the full potential of Marks & Spencer for the benefit of its shareholders and customers”.

Mr Rose said he was “thrilled” to have been appointed chief executive.

He added: “Marks & Spencer is a great company with a great history and a great reputation. I know the business well having spent the first 17 years of my retailing career with the company.

“My task is to harness the skills and energy of its people for the long term benefit of our customers and shareholders. I look forward to the challenge.”

Having secured the services of Mr Rose, Mr Vandevelde – who announced his intention to leave the board on May 10 because of “personal commitments” – has also left the company immediately because he felt it was “inappropriate to prolong his departure”, according to M&S.

Mr Vandevelde said: “I am delighted that Stuart Rose is joining Marks & Spencer and I wish him every success. I wish I could have stayed to see Marks & Spencer through the present circumstances but I can leave with the comfort that the company is in the best hands.”

Mr Rose will be joined on the board by Charles Wilson, who has worked with him at Argos, Booker and Arcadia, and Steven Sharp is also to join the management team.

Billionaire retailer Mr Green is reportedly preparing to use £1bn (€1.5bn) of his personal fortune to fund the bid, with the rest coming from banks and existing M&S shareholders, who will be offered shares in a new company to be listed on the Alternative Investment Market.

The appointment of Mr Rose to lead M&S’s defence against Mr Green would constitute a major U-turn for the beleaguered retailer’s board, one report claimed yesterday.

M&S has previously ruled out appointing Mr Rose, 55, to replace Mr Vandevelde, the Daily Telegraph reported.

The board has been forced to change its mind following widespread pressure from institutional shareholders including fund managers Isis and Scottish Widows, the newspaper said.

M&S investors were also reported to have been demanding the immediate departure of part-time chairman Mr Vandevelde.

Chief executive Roger Holmes had also faced criticism in the City.

Meanwhile, City watchdog the Financial Services Authority has said it is looking into dealing in M&S shares prior to last Thursday’s announcement by Mr Green, which sent the retailer’s shares up by more than 18%.

In a statement issued on Friday, the FSA said it had “noted the price movement prior to the announcement and, in line with our policy of reviewing all suspicious price movements, is reviewing trading in Marks & Spencer’s shares and related derivatives”.

M&S is reported to have issued about 20 section 212 notices last Friday, which force shareholders to reveal their identity.