Chairman plans departure at Burberry

FTSE100 fashion retailer Burberry has been served the latest blow as chairman Sir John Peace announced his intention to step down.

Sir John oversaw the growth of the company after it span out of GUS in 2002. He has been forced to defend the pay packet of CEO Christopher Bailey and the top team of late, as well as dealing with the departure of chief executive Angela Ahrendts, who quit to run Apple’s retail operations in 2013.

The long-standing chairman will be replaced by the end of 2018 according to the Guardian, but it is the latest in a series of management changes at the company.

It comes just as chief executive Marco Gobbetti takes over as chief executive. Previously Christopher Bailey had been combining his role as chief creative officer with the CEO position.

Yesterday Burberry also announced the appointment of senior independent director Jeremy Darroch, who will be overseeing the search for a new chairman, and non-executive director Ron Frasch. Frasch is experienced in the luxury retail market, and has held president and chief merchandising officer of Saks Fifth Avenue between 2004 and 2013 and chief executive officer of Bergdorf Goodman before that.

He is currently an operating partner of Castanea Partners Inc. a private equity company which is principally focused on investing in branded consumer products and services. He is also a non-executive director of Crocs Inc. a NASDAQ company which manufactures innovative casual footwear.

Burberry has encountered a difficult period with sales dropping off in Far East markets. Plans for a relocation of their Castleford trenchcoat factory to Leeds have been put on hold as a result, but as a cost-cutting measure, the retailer announced it was moving office functions and 300 staff to the city, signing on to 6 Queen Street in the biggest office letting of the year so far.

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