Mothercare boss Mark Newton-Jones is taking a pay cut after being re-hired to turn around the struggling retailer’s fortunes just over a month after being ousted.
Details of the reappointment of Mr Newton-Jones as chief executive were confirmed a day after the move was first announced as part of a shake-up which will see 50 stores axed and 800 jobs go.
He will be paid a basic salary of £480,000 to lead the turnaround of the group, compared to £612,000 received in the year to March 2017, which was part of a total package including pension and benefits worth £814,000.
A Mothercare spokesman said: “In recognition of Mothercare’s financial position and the support for the restructuring and refinancing given by multiple stakeholders, Mark has taken a significant pay cut.”
It is the latest twist in the boardroom drama at the retailer, which saw Mr Newton-Jones leave on 4 April to be replaced by former Tesco executive David Wood – on a basic salary of £430,000.
The saga took a new turn later in April after the retirement of chairman Alan Parker – whose replacement Clive Whiley was instrumental in pulling together a new financing package for the beleaguered company and deciding to reinstate Mr Newton-Jones.
Mr Wood will stay on as managing director on the same salary as he was earning as chief executive.
Mothercare on Thursday set out plans for a company voluntary arrangement (CVA) to accelerate its ongoing store closure programme.
It will seek agreement from creditors to shut 50 loss-making stores and slash rents at 21 others under the rescue plan, which is similar to those pursued by others such as Carpetright and New Look.
The company, which dates back to 1961, said it was facing a “perilous financial condition” and reported a £72.8m loss for the year to 24 March.
Mothercare’s restructuring would see it shrink from 137 UK stores currently to 73 by 2022 – down from a network of more than 400 in 2017.
The company employs around 5,000 people, most of them in Britain. It has more than 1,000 stores overseas, largely operated through franchises.