Following Friday's announcement that Sara Weller, Sainsbury's deputy managing director, is leaving to join Argos, media speculation has turned to managing director Stuart Mitchell.
The Financial Times believes that Mitchell, 42, is next to go as part of a series of management changes planned by new chief executive Justin King.
The expected route to the door is via a demotion, which would inevitably force the hand of Mitchell, who was the number one internal candidate for the ceo role.
King is said to be keen to recruit outsiders as early as possible in his tenure, to enable him to stamp his own authority on the role. He is also in a hurry because predecessor Sir Peter Davis is moving up to become chairman, which is contrary to corporate governance best practice, said the FT.
Insiders at Sainsbury's are reported to have confirmed that a board restructure is likely, although the group has refused to comment on the individual position of Mitchell.
Meanwhile, rumours persist that Philip Green, the entrepreneur who was involved for a long time in the Safeway bidding process, has made his intentions to acquire Sainsbury's know to the group. There is, as yet, no offer on the table. One major obstacle to Green's interest is the Sainsbury family, which has to this point given no indication that it wishes to sell its shares in the company.
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