The Chief Executive of the UK’s leading value footwear retailer has resigned with immediate effect following lower-than-expected trading results.
According to a stock market announcement earlier this morning, Shoe Zone’s board expect to deliver a full-year performance below expectations after facing a “challenging” period.
Current Executive ChairmanAnthony Smith will resume his role as Chief Executive on a permanent basis, while Chief Operating Officer Charles Smith, will assume the role of Interim Executive Chairman. Jonathan Fearn will remain in the role of Chief Financial Officer.
Commenting on the departure of Nick Davis, Current Chief Executive Anthony Smith said: “I would like to take this opportunity, on behalf of the Board, to thank Nick for all of his work since he joined the business in 2003. Nick was instrumental in getting Shoe Zone ready for the public markets in May 2014 and was promoted from CFO to CEO in June 2016. The Board wishes him well in his future endeavours.
“As has been widely publicised, the UK High Street is currently facing a challenging environment in which to operate. The pressure on the retail property market has enabled Shoe Zone to achieve an average 23.5% fall in rents on renewal and average outstanding lease length of only two years. As a consequence of this and the tough freehold property market, our freehold assets had to be revalued to represent fair value and give us future flexibility.
“While we, therefore, face a short-term impact on our balance sheet, we do not anticipate any change to our dividend policy, reflecting our confidence and excitement in the long-term growth opportunities through the Big Box roll-out, continued operational improvements and our multi-channel proposition.”
Featured image via Shoezone