Debenhams finance boss quits

Debenhams finance boss Simon Herrick has resigned just days after the department store chain’s shock profits warning following disappointing Christmas trading.

Mr Herrick has stepped down from his post as chief financial officer with immediate effect, but will not leave the company formally until February 7.

There was no reason given for his departure, but the move comes after Debenhams warned on Tuesday that profits were expected to fall by as much as 26% due to its failure to entice a rush of shoppers in the days leading up to Christmas, sparking a 12% shares slide.

It also follows reports last week that Mr Herrick’s position at the group was under pressure amid shareholder concern over his performance.

He has been criticised over a so-called “Santa tax” letter hitting suppliers with demands for discounts days before Christmas.

Investors are also said to have been angered by guidance provided to analysts this year, with the City caught off guard by an earlier profits warning in March and unexpected costs revealed when full-year results were announced in October.

Debenhams said it had begun a search to find Mr Herrick’s replacement, with finance director Neil Kennedy taking on the role on an interim basis.

Mr Herrick will continue to be paid salary and benefits worth nearly £490,000 over a 12-month notice period, with up to £12,000 on top to cover legal fees.