Mitchells & Butlers CEO resigns

Mitchells & Butlers has parted company with its CEO, Tim Clarke, after the pub and restaurant operator suffered serious losses on the financial market. 

In the 28 weeks to 11th April, the company’s pre-tax profits fell by 48% to £44 million. The company lost £96 million pre-tax as the result  of an interest rate swap, adding to last year’s loss of £391 million due to another failed hedge.

At the time, Clarke offered to resign, but it was the company’s finance director, Karim Naffah who was forced to leave his post instead.

Mitchells & Butlers released a statement, saying that Clarke “will leave by mutual agreement.” The company has also reassured shareholders that there will be no further losses from these hedging activities.

It also reported that, while trading in the first half of this year had been “unusually volatile”, April had been  very strong as a result of the late Easter and good weather. However, it commented that the first half of May had not proved so positive.

Until a full-time replacement is found, Clarke’s role has been filled by COO Adam Fowle, who is widely seen in any case as a leading contender for the post. Other names being tipped are Carl Leaver, former executive for Whitbread and the De Vere Group, who resigned this week from Marks & Spencer; or Bob Ivell, who has headed both Regent Inns and Scottish & Newcastle.   

Gabriel Savage, 21.05.09