The boss of Asda’s George clothing range has been poached by a niche fashion business a fraction of its size.
Anthony Thompson will join Fat Face, the private equity-owned retailer, in April. The arrival of Mr Thompson, credited with George’s rapid growth in the last three years, will fuel speculation that Brigdepoint, Fat Face’s owner, is focusing its efforts on turning the company around with a view to a possible float or sale.
Bridgepoint hopes to sell or float Pets at Home, its successful pet equipment chain, this year.
Mr Thompson, 45, is leaving George for a business approximately 5 per cent its size. At one point late last year, George was the biggest seller of clothes, by volume, in Britain.
His surprise departure comes after several years of uninterrupted growth at Asda. Under Mr Thompson, it has grown its market share from 4 per cent of the market to 4.4 per cent, while Tesco’s share has stagnated at 2.6 per cent, according to figures from Verdict, the research group.
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Andy Bond, chief executive of Asda, heaped praise on Mr Thompson in a memo to staff announcing his departure yesterday.
“Anthony arrived here in 2007 with a very clear vision to get George firing on all cylinders, after a period that could be best described as somewhat ordinary. But what he was able to do was make the business extraordinary again”, Mr Bond wrote.
“As George’s leader, he championed the customer, led long-term investmetns in distribution and IT, established a new HQ and simplified the offer in stores...It’s therefore not a surprise that George re-took the number one position for volume from M&S at the end of last year following 24 months of consectuvie growth.”
Mr Bond, himself a former managing director of George, said that he intended to announce a successor in “weeks, not months”, which suggests that an internal candidate is likely to be appointed.
Mr Thompson began his career as a trainee at Marks & Spencer, before leaving in 1995 for spells at Arthur Andersen, as a consultant, and chief executive of Blackwell, the publisher and book store, where he was chief executive.
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He was in charge of Gap in Britain, before returning to Marks & Spencer in 2003. He reportedly left M&S because he felt stifled by a lack of opportunities at the retailer.
Mr Thompson will be given a stake in Fat Face, a standard incentive in the private equity industry, which means that any sale or flotation could mark a substantial payday.
Fat Face, which specialises in surf-style casual clothes and accessories, had sales of £130 million last year, up 2.8 per cent, helped by 19 store openings — taking its total to 171 stand-alone locations.
It has struggled under its debt burden. Bridgepoint bought a tranche of its debt at a discount last year, helping to stablise its financial position.
Mr Thompson said: “Fat Face is a very special brand with a strong heritage. I am excited to be joining the Fat Face team and can see huge potential for the brand.”
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Mr Thompson is fond of the brand. He owns a vintage Volkswagen camper van — the surfer’s vehichle of choice and the same model found in the foyer of Fat Face’s headquarters in Havant, Hampshire.
Bridgepoint has appointed advisors to run a “dual” exit process for Pets at Home, which may result in either a secondary sale or a flotation. It has been valued at about £800 million.