Clarks chief resigns as company investigates complaints about conduct
THE boss of Clarks has resigned after the shoe retailer began an investigation into his behaviour following a string of complaints.
The company said Mike Shearwood’s “conduct, conversations and expressions” had fallen short of the behaviour expected of its staff “on a number of occasions”.
The chief executive has left the 193-year-old business immediately. The board has appointed Stella David, senior independent director, as interim CEO until a replacement is found.
In a statement, the shoemaker said: “Clarks confirms its CEO has resigned following an investigation into complaints of conduct contrary to the family-owned company’s code of business ethics. Clarks recently learned that aspects of Mr Shearwood’s conduct, conversations and expressions fell short of the behaviours expected of all its employees on a number of occasions. In these circumstances the board has accepted Mr Shearwood’s resignation.”
They declined to comment on the specifics of the allegations.
Mr Shearwood’s exit follows the controversy Clarks courted last year, when a row erupted about sexism after it named a girls’ shoe range “Dolly Babe” and a boys’ line “Leader”. The inner soles of the girls’ shoes also featured love hearts, while footballs decorated the outside of the boys’ shoes.
Mr Shearwood took the top job at Clarks in 2016, making the switch from fashion retailer Karen Millen after an attempt to secure a management buyout from its Icelandic owners failed.
He filled the hole left by company veteran Melissa Potter, who was ousted as CEO by the Clarks board alongside Robin Beacham, the finance director, following lacklustre results.
During his career, Mr Shearwood spent six years as CEO of Aurora Fashions, the owner of Oasis, Coast and Warehouse, as well as a stint working at Zara-owner Inditex.
Despite efforts to bolster Clarks’ online and international business, profits and sales have fallen during his tenure.
Profits slumped 29 per cent to £45.2million during the last financial year, as it grappled with rising costs and a shift in shopping habits towards online. Group turnover slipped 7 per cent to £1.5billion over the period.
Clarks has been attempting to bolster its financial position by expanding overseas, including mounting a strong push into Asia. China is its third largest market, where the company holds around 120 stores and 400 concessions.
However, trading has proved tough and the business has cut staff in the past two years to help drive down costs.