JD Sports boss quit after failed coup attempt
The chair of JD Sports quit earlier this week because he failed to convince its board to eject its chief executive, it has been revealed.
Andy Higginson quit as chair of the FTSE 100 sportswear retailer on Wednesday, with his tenure set to complete after the firm’s annual meeting in July.
He said he was “proud of his time” at the company, in which JD oversaw a “tough period” in the sportswear market and expanded the brand in the US.
But Higginson’s departure came after he failed to convince his board partners that chief executive Régis Shultz should be ousted because of the firm’s slowing sales and stalled progress in North America, according to the Financial Times.
Some execs at JD Sports reportedly agreed with Higginson but the chair did not garner enough backing to avoid being forced out himself, with majority shareholder Pentland throwing its weight behind Shultz.
Chair quit after failing to oust chief exec
Higginson and the board reportedly came to a “mutual decision” that he would have to leave the firm, following the failure of his campaign to oust the chief executive.
“It’s natural for a board to have discussions about the right leadership, particularly in a tough trading environment, but there was not a binary decision,” one insider said.
JD Sports told the Financial Times: “It was mutually agreed between Andy and the board that this is the right time for a change of chair; there has been no disagreement about the board’s continued support for the CEO.
“The board is grateful for the valuable role that Andy has played during his tenure at the business.”
Higginson is an experienced figure in retail, having served as an executive director at Tesco for 15 years, chair at Morrisons and non-executive chair at Poundland.
Shultz bids fond farewell despite power struggle
Responding to Higginson’s departure, Shultz said: “I’m grateful to Andy for his support and counsel through a critical and transformational period for the Group.
“His leadership and experience have been crucial in building the capability we have around the Board today.”
Shultz, a French businessman and executive, led French companies including furniture retailer BUT and retail chain Monoprix before joining JD in 2022.
JD Group’s global sales fell by 1.8 per cent in the three months before January, according to its latest trading update.
The retailer said it is suffering from a volatile consumer environment, particularly in Europe and the UK – where sales fell by three and five per cent – but maintained its target of a £849m pre-tax profit.
Higginson joined JD Sports as chair in 2022, and the firm has appointed Darren Shapland as interim chair until a permanent replacement is found.
Shares in the company fell by two per cent on Friday, to 70p, leaving the stock down more than 18 per cent this year.