Bonmarché shares drop in the wake of CEO Beth Butterwick's exit for Karen Millen

Value fashion retailer Bonmarché Holding had an unfortunate start to the day, as the company witnessed its share price drop more than 22 percent as news broke its Chief Executive Officer, Beth Butterwick, was jumping ship to join the team at high street retailer Karen Millen amidst a profit warning.

Butterwick is exiting her role at the helm of the retailer after four years, but is set to remain with Bonmarché until her successor has been appointed to "ensure a smooth transition", stated the company in a statement. She has been credited ith turning around the company, after it was separate from Peacocks, which entered into administration in 2012.

Beth Butterwick leaves role at Bonmarché to take up the reigns at Karen Millen

"It has been a great privilege to lead this unique Company," said Beth Butterwick on her exit. "I would like to offer my sincere thanks for the valued support from customers, colleagues, suppliers and shareholders, throughout my time with Bonmarché." The value fashion company added that it has already begun it's search for Butterwick's successor and will make "a further announcement in due course."

In her new role at Karen Millen, Butterwick is set to lead a new strategy to reshape the organisation worldwide by increasing its focus on digital. Karen Millen recently completed a restructuring its balance sheet with its shareholder Kaupthing, in order to create a strong platform for its future growth scheme.

"After an extensive search, we are thrilled to announce Beth Butterwick as Karen Millen’s new CEO," said Neil McCausland, Chairman of Karen Millen, on its new appointment. "Beth has done an outstanding job in her previous roles with retailers including Bonmarché, Gap and M&S. We’re delighted to have secured someone of Beth’s calibre to lead our strong team and take Karen Millen forward."

Butterwick added: "This is a really exciting time to be joining Karen Millen. There is a very clear strategy and direction for the business, which I am looking forward to leading. Following the recent refinancing, Karen Millen has the resources and support to realise its ambitions for growth worldwide."

Butterwick exits Bonmarché amidst profits warning

In spite of her departure, Bonmarché Chairman John Coleman, had nothing but praises for Butterwick and thanked her for all her work and contributions over the years. "On behalf of the Board, and all our colleagues at Bonmarché, we thank Beth for her exceptional contribution over the past four years," he said.

"She has led the business through a transformative period, through the acquisition by an affiliate of Sun Capital Partners in 2012, the IPO on AIM in 2013, and most recently the Company’s transition to the London Stock Exchange’s Main Market as one of the UK’s largest women’s value retailers."

"Beth has imbued Bonmarché with a sense of energy and purpose, and today the business is well-placed for long-term success, with a robust balance sheet, strong management, and a carefully formulated growth strategy. We wish her all the very best for the future." News of Butterwick's departure comes as the company issues a profit warning, dropping it's pre-tax profit expectations to fall between 10.5 million pounds and 12 million pounds due to the "ongoing volatility of the trading conditions."

"Trading conditions during December, particularly since 'Black Friday' on 27 November, have been very challenging, and have not normalised," said the company in a statement. "The Board’s view is that these trading conditions are likely to continue for the remainder of the winter season and it has therefore revised its profit expectations for the current financial year."

Bonmarché is set to issue its post-Christmas trading update on January 15, 2016.

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