Carpetright Chief Executive Officer Darren Shapland had quit his post as the UK retailer's sales continued to deteriorate. Founder Philip Harris broke the news in a conference call today. The 71-year old founder and chairman would be in charge before a replacement could be found. According to Harris, Shapland stepped down from his post after he informed the firm that he would not be able to stay until his contract ended. He returned to Carpetright last year and was supposed to stay for five years. Shapland originally joined the company in 2002 but left in 2005.
According to Carpetright, its sales had plunged to as much as 15% in London. This represented the lowest drop since March 2010. Bloomberg reported that the sales decline reduced Carpetright's chances of reversing its three-year trend of low performance.
In a note, Peel Hunt Analyst John Stevenson said he found Shapland's move highly surprising. He also said Shapland's exit did not appear to be related to the firm's deteriorating sales.
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