John Smedley managing director Andy Caughey has left the British brand just weeks after it reported a slump in pre-tax profits in 2009.
The reason for Caughey’s departure is unclear but it is thought the knitwear brand has continued to underperform and that store expansion plans have been put on hold.
Pre-tax profits during the year to December 31, 2009 dropped to £32,242, down from £988,169 the year before, while sales fell 0.5% to £14.7m and administrative costs soared by nearly £1m to £4.28m.
It is understood Caughey’s responsibilities have been taken on by chairman Ian Maclean, who in a statement with the accounts called the brand’s position “unsustainable”.
Maclean’s statement read: “With sales flat and costs higher, we delivered little profit. This is clearly an unsustainable position unless we can grow sales significantly.”
He added that online sales and those from the refurbished Brook Street store in London, which opened during 2009, had improved.
John Smedley declined to comment.