Shoe Zone boss quits as firm issues profit warning
Nick Davies, the chief executive of Leicester retailer Shoe Zone, has resigned.
Shoe Zone says Davies has left to “pursue other interests” and has left with immediate effect.
Anthony Smith, executive chairman, will resume his role as chief executive on a permanent basis. Charles Smith, chief operating officer, will step into the role of interim executive chairman and Jonathan Fearn will continue as chief financial officer.
The news come as the firm wanrs that trading conditions since its interum on 21 May 2019 have been “challenging”. The company has warned that it expects to deliver a full year performance below its expectations.
Shoe Zone also says it has suffered a £3.1m write down on its 17 freehold properties.
Anthony Smith, chief executive of Shoe Zone, 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.”
