×
1 035
Fashion Jobs
LEVI'S
Performance Marketing Manager
Permanent · London
ESTÉE LAUDER
la Mer - Business Manager - Bentalls, Kingston - 22.5 Hours / 4 Days - Part Time, Permanent
Permanent · Kingston upon Thames
SHISEIDO
Ecommerce Manager - Nars, Shiseido & Drunk Elephant
Permanent · London
VANS
Account Coordinator - Dutch Speaking - Vans
Permanent · NOTTINGHAM
ESTÉE LAUDER
The Estée Lauder Companies - CRM And Loyalty Manager
Permanent · London
ESTÉE LAUDER
Clinique - Consultant - John Lewis, Bluewater - 25.5 Hours - Part Time, Permanent
Permanent · Dartford
ESTÉE LAUDER
Clinique - Consultant - Boots - Metro, Gateshead - 21 Hours - Part Time, Permanent
Permanent · Gateshead
ESTÉE LAUDER
Director, Global Social Marketing
Permanent · London
ESTÉE LAUDER
Tom Ford - Business Manager - John Lewis, Milton Keynes - 37.5 Hours, Days - Full Time, Permanent
Permanent · Milton Keynes
SHISEIDO
Nars Account Manager, Fenwick Bond Street (37.5 Hours)
Permanent · London
LIBERTY LTD
Sales Manager
Permanent · LONDON
LIBERTY LTD
Retail Security Officer
Permanent · LONDON
VF INTERNATIONAL
Inbound Logistics Analyst - 12 Month Ftc
Permanent · COALVILLE
VF INTERNATIONAL
Warehouse Trainer
Permanent · COALVILLE
VF INTERNATIONAL
dc Team Leader
Permanent · COALVILLE
ESTÉE LAUDER
Clinique - Consultant - Boots, White City London - 35 Hours - Full Time, Permanent
Permanent · London
ESTÉE LAUDER
la Mer - Business Manager - Harvey Nichols, Birmingham - 37.5 Hours / 5 Days - Full Time, Permanent
Permanent · Birmingham
ESTÉE LAUDER
Regulatory Scientist - Global Ingredients Compliance
Permanent · Petersfield
SHISEIDO
Finance Analyst
Permanent · London
SHISEIDO
Area Sales & Education Manager | Central South England (Ftc)
Permanent · Reading
HUGO BOSS
Sales Manager - Hugo
Permanent · London
ASICS
Field Sales Representative
Permanent · Warrington
By
Reuters
Published
May 5, 2011
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Carrefour fires French boss, shelves property IPO

By
Reuters
Published
May 5, 2011

May 5 - Carrefour SA fired the executive tasked to revive its core French business and said it was shelving a controversial property listing, fuelling talk of boardroom dissent and worries over its turnaround plan.

Carrefour
James McCann

Europe's top retailer said James McCann was leaving only 15 months after he was picked to boost flagging French sales, raising concerns over its new Carrefour Planet hypermarket revamp plan -- the lynchpin of the group's turnaround plan.

Reasons for the shock departure were not given in Carrefour's statement, but a Carrefour spokeswoman said McCann was leaving because the performance of the French business -- which made 38.7 percent of 2010 net sales of 90.1 billion euros ($134 billion) -- did not meet management expectations.

Carrefour did not say if McCann had been fired or had resigned, though a source close to the matter said he was fired.

Contacted by phone, McCann told Reuters he would not comment at this stage on the reasons for his departure.

One person familiar with the matter said the former Tesco Plc manager was uncomfortable with plans to spin off assets, which have been championed by key shareholders Colony Capital and Groupe Arnault but opposed by others.

Several sources said McCann had grown frustrated with pressures from top Carrefour shareholders and had left because he felt he did not have enough leeway to properly do his job.

"Neither of these developments is positive in our view and once again brings into question management's strategy and ability to ... execute its turnaround plan," analysts at Espirito Santo said in a research note.

Francois Chaulet, fund manager at Montsegur Finance, said shelving the IPO was not necessarily a bad decision but added: "There is a real problem with Carrefour today."

At 1011 GMT, Carrefour shares were down 2.2 percent at 30.91 euros, off an earlier low of 30.8 euros and valuing the group at 22 billion euros. The stock has lagged the STOXX Europe 600 retail index .SXRP by 13 percent over the past year.

"McCann's departure will raise further questions over the potential for the "Planet" concept and the "En Avant" turnaround programme to be successful and this is key to our long term investment case," JP Morgan Cazenove analysts said.

MOUNTING OPPOSITION

Carrefour, the world's second-biggest retailer by sales behind U.S. group Wal-Mart Stores Inc, said Chief Executive Lars Olofsson would take over management of its French business pending the appointment of a successor and it would press ahead with plans to spin off discount chain Dia.

Carrefour launched its "En Avant" turnaround plan in 2009 with a goal of making 4.5 billion euros of savings. In September it said it would invest 1.5 billion euros in revamping its main western European hypermarket business.

After initial enthusiasm for the plans, investors' confidence was shaken by two profit warnings late last year.

Earlier this year, the group came up with a plan to float discount chain Dia and 25 percent of Carrefour Property to deliver 4 billion euros in special dividends and mollify key shareholders Colony and Arnault.

Colony and Arnault, which hold 13.5 percent of the capital and 20 percent of the voting rights of Carrefour, are still down on their 2007 investment, made at about 50 euros a share.

However, the property spin-off in particular sparked opposition from parties including activist shareholder Knight Vinke, European shareholder rights group Deminor, French minority shareholder association APPAC, French labour unions and founding family shareholder Defforey.

Vinke, which owns 1.5 pct of Carrefour's capital, hailed the decision to defer the listing of 25 percent of Property, while Michel Enguelz at labour union Force Ouvriere said McCann's departure was negative but the Property decision was "encouraging".

Critics had said ceding some control of its properties could weaken Carrefour in a competitive grocery market, and people familiar with the matter said there was some opposition to the plans within the boardroom.

Earlier this year, European boss Vincente Trius defected to Canadian grocer Loblaw and independent board member Jean-Martin Folz left, fuelling talk of dissent.

"The broader question ... is why they were doing it (the property spin off) in the first place. There's some pretty big worries about corporate governance," said Bernstein analyst Chris Hogbin.

By Dominique Vidalon and Mark Potter
(Additional reporting by Mark Potter in London; Editing by James Regan and Erica Billingham)

© Thomson Reuters 2022 All rights reserved.