By Staff writer
Dubai-based billionaire pushing for board shake-up at Debenhams after weak recent performance
Dubai retail mogul Micky Jagtiani has been named as ‘a driving force’ behind a shareholder rebellion at British department store giant Debenhams.
According to a report in the Sunday Times, Milestone Resources – a holding company controlled by billionaire Jagtiani – is one of three large investors pushing for a board shake-up at the retailer. Milestone, along with Schroders and Old Mutual, own about 25 percent of Debenhams.
The newspaper reported that the three firms were said to have become increasingly frustrated with both Debenhams’ CEO and chairman, after the retailer issued two profit warnings in 2013 and saw its finance director depart.
The firm has also been suffering from weak consumer spending, stronger competition on the high street and a reliance on sales and promotions.
Debenhams’ CEO, Michael Sharp, said in June that the retailer was on track to meet full-year profit expectations, despite seeing flat growth in its most recent quarterly results.
However, the Sunday Times reported a source close to the shareholder plot as saying that Debenhams’ progress was too slow, and that swift action should be taken to remove Sharp.
Micky (Mukesh) Jagtiani is the founder and chairman of the Dubai-based Landmark Group, which runs about 2,000 stores – under a variety of brand names – across the Middle East and Asia.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.