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Blood on the boardroom carpet

Carpetright chief executive falls on his sword
October 7, 2013

The chief executive of Carpet retailer Carpetright (CPR) has paid for the latest profit warning from the company with his job. A withering profit warning, in which Carpetright admitted that profits will be "significantly below" expectations was accompanied by news that chief executive Darren Shapland was leaving the business with immediate effect after just 17 months in the hot seat.

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The gap in the executive team is to be filled by chairman and founder Lord Harris of Peckham resuming the executive duties he relinquished when Mr Shapland took the job, and the promotion of trading director Graham Harris, who is no relation to the chairman, to chief operating officer after just four months with the company.

Trading in the most recent 10-week period to 29 September was dire. The "volatile" UK market saw like for like sales dip by 2.5 per cent and total sales by 4.1 per cent. The UK store base stands at 474, of which 218 have been modernised. In Europe, like-for-like sales in Netherlands, Belgium and Ireland fell by 7.6 per cent. Management said that the overall shortfall in sales meant had forced it to "lower previous expectations".