Marks & Spencer has appointed Stuart Rose, former head of clothes store group Arcadia, as its new chief executive.
Rose replaces Roger Holmes in the hot seat, while chairman Luc Vandevelde, who announced his intention to resign on May 10, will leave immediately, to be replaced on an interim basis by investment banker Paul Myners.
The management changes are seen by analysts as a sign that M&S is ready to repel an anticipated takeover bid from retail tycoon Philip Green.
Green said on Friday that the estimated £10 billion he needs to finance his bid was "virtually in place," triggering speculation that a formal offer could come this week.
The appointment of Rose, who left Arcadia at the same time as Green took the group over, has been described as a “surprise” and even "a sensation" in the national media. The drastic clearout in order to defend a prospective bid is seen as a dramatic move.
It is a homecoming for Rose, who began his retail career with a 17-year stint at M&S, is credited with engineering a dramatic turnaround at clothing specialist Arcadia.
His main task will be to revitalise M&S' clothing division, which experienced a 2.5 per cent dip in sales during the first three months of this year.
He is expected to lead the store group's campaign to fend off Green.
"This business is not bust - this a fine business with a great heritage with 10 million customers a week coming through its stores, and which made three quarters of a billion pounds in profit last year," he said yesterday.
"What I think has happened is that it's lost some of its glory days image. The market externally has become intensely competitive, and I think M&S has been squeezed."
Rose added that the M&S board would look closely at any takeover offer. "Every time you're faced with a situation like that, the board and the advisors have to meet and say under the circumstances, is this a good offer, and if that time comes, I'm sure there'll be a similar sort of meeting," he said.
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