M&S chief forced out

Marks & Spencer boss Luc Vandevelde was today forced to quit the troubled High Street giant.

The £420,000-a-year chairman, brought in to try to reverse the company's sliding fortunes, has been beset by rumours of boardroom rifts as he spent increasing amounts of time away from M&S to run his own business.

The move is a huge blow to M&S as it battles with yet another drop in sales and controversy over its new teenage clothing range - which includes a boob tune and 11-inch mini-skirt.

M&S shares dropped to their lowest level in a year last month after it revealed sales of clothing, general merchandise and homewares had fallen 5.2% in the first three months of the year. Today Marks & Spencer officially confirmed Mr Vandevelde's resignation after four years in an announcement to the Stock Exchange, saying he had " indicated he wishes to leave".

It added: "A search is under way for a new chairman and Luc will remain in post for as long as necessary."

The statement sparked feverish speculation in the City over a likely successor. Several bighitters have already been linked to the job, still one of the City's most prestigious, but Archie Norman, the Conservative MP and former Asda boss, looks to have counted himself out of the running.

Friends of Norman, viewed as the favourite to succeed Mr Vandevelde, said he was reluctant to take the job given his political commitments and work as chairman of telecoms firm Energis.

Other potential candidates include Stuart Rose, who sold Topshop owner Arcadia to Philip Green two years ago, David Varney, head of mobile phone company mmO2 and City banker Derek Higgs.

The resignation announcement prompted speculation that Mr Vandevelde was planning to work for French retail giant Carrefour, where he holds a seat on the board.

It said his decision had been prompted by personal commitments to the French Halley family, the largest shareholder at Carrefour. Paul-Louis Halley, who founded a rival chain eventually run by Mr Vandevelde and then merged with Carrefour in 1999, died in a plane crash in Oxfordshire last year.

Mr Vandevelde was known as "Lucky Luc" after his initial success at M&S.