Mothercare boss Mark Newton-Jones departs after turnaround falters

Toy and baby clothes seller Mothercare has dramatically ousted boss Mark Newton-Jones on Wednesday after suffering a slump in sales.

David Wood, ex-president of discount chain Kmart and a former director at Tesco, will take over with immediate effect, the company said. Wood joins at a troubled time for the retailer as it tries to turn its fortunes around after a string of profit warnings and poor sales.

Sources close to the company said the management team was frustrated with the speed of the turnaround. Mothercare, which Newton-Jones has been trying to rehabilitate for nearly four years, has seen its share price drop from as high as 245p in 2014 to 17.8p.

Chairman Alan Parker said: “We have made positive progress but it is essential that we have the most effective leadership in place.”

Just last month it revealed it was going to breach its banking covenants as it sought to tap investors for more cash to prop up its balance sheet.

Changing shopping habits and a squeeze on consumers have been hurting its bottom line.