Arcadia sees departure of top directors

Arcadia, the Topshop to Burton retail group owned by Philip Green, will see to of its top directors leave, in the first big change to the group's structure since Green's takeover. Kim Morton, the human resources director, due to leave next month, will not be replaced, while Mr Green said that he would look for a new finance director with retail experience to replace Paul Budge, who will leave the company this year.

The two directors, who have both been with the company for more than ten years, join a number of high-level departures from Arcadia in recent months. These include Clem Constantine, the former property director, who is now in the same role at Marks & Spencer, and John Lyttle, the buying director at Burton, who is moving to the same job at Matalan. Jenny Langley, the buying director for Dorothy Perkins, is set to leave this year, while industry insiders say that Frances Russell, the brand director of the Evans chain, is also keen to leave.

However, according to Drapers, the fashion trade magazine, Ms Russell has had a "change of heart" and remains in her post. Mr Green would not comment on whether Ms Russell wanted to leave, saying: "She's still there." He added: "We employ 43,000 people and people come and people go. That's the industry. Everybody thinks we must be a good training ground and want to pinch my staff. However, retail insiders said that several more staff at Arcadia were considering their positions after a generous three-year bonus plan put in place by Mr Green matured in November last year.

According to the BBC, one source said: "A lot of people have been there a long time and have enjoyed a substantial payout, so they are saying: 'I'm off.' " Mr Green stated he had paid out £95 million in bonuses since buying the company three years ago and that the latest departures were not linked to November's payouts. He further added: "A couple of people are leaving - big deal. In the meantime, people have done a good job and got well rewarded." He pointed out that Arcadia continued to expand, with new large stores in Manchester and Bromley opening this month. "Last year we made about £330 million, three times what it made when it was sold to me," he said.