M&S comes out fighting
Stuart Rose appointed chief executive
Marks & Spencer has sent a clear signal that it plans to fight the planned bid by Philip Green, announcing the appointment of Stuart Rose as chief executive.
Rose replaces Roger Holmes with immediate effect. Chairman Luc Vandevelde, who had already announced his departure, is also leaving immediately, with M&S non executive director and investment banker Paul Myners to act as interim chairman.
The appointment of Rose, who has a strong track record in fashion retail and has been widely touted by the City as the right man to spearhead a sales recovery at M&S, indicates that Philip Green will face opposition from the high street giant to his bid, expected layer this week.
Rose started his retail career at Marks & Spencer in 1971, working at the company for 18 years. He held senior roles at Burton, Argos and Iceland, before becoming chief executive of Arcadia in November 2000. He left two years later when Green, already owner of Bhs, added Arcadia to his empire.
Rose had been suggested by some investors as a possible chairman at M&S to replace Vandevelde, who is expected to take the chair at French retailer Carrefour later this year.
[img r]M&Srogerholmes.jpg[/img]However, Holmes ([i]pictured[/i]) was said to have been resistant to the appointment of Rose, believing that his strong retail track record would make it difficult for Rose to take a back seat, undermining Holmes’ position. The decision to replace Holmes with Rose suggests key M&S shareholders have now indicated to the board they are not prepared to wait for the recovery initiatives implemented by Holmes to have an effect.
M&S will be hoping that the appointment of Rose is enough to convince investors to reject Green’s offer, expected to be pictched at about 400p-a-share.
Shareholders now have to decide whether to give Rose a chance to prove he can make a difference, or to accept a hostile bid from Green, whose overtures now seem certain to be rejected by the M&S board.
Rose told journalists M&S had still not not heard from Green, who anounced his bid, through Revival Acquisitions, to the Stock Exchange on Thursday.
[img l]M&Sstorefront.jpg[/img]Rose said: “I am thrilled to have been appointed as chief executive. 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.”
He later told journalists: “I’ve been here five minutes and I didn’t take this job to sell the business.”
Rose will be joined on the board by former colleagues Charles Wilson, who worked with Rose at Argos, Booker and Arcadia, and PR and marketing specialist Steven Sharp.
Vandevelde handed over the chief executive reins to Holmes last year, having presided over a recovery after M&S saw sales slip in the late 1990s. However. problems have resurfaced over recent months, with a 2.5 per cent fall in clothing sales during the first three months of this year.
Myners said: “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.”
M&S has also added investment bank Citigroup to its advisers, replacing NM Rothschild, and joining Cazenove and Morgan Stanley in supporting M&S’s bid defence.
