Mothercare chief in the wings

Mothercare could soon complete its new management team

The mother-and-baby retailer Mothercare has almost completed its search for a new chief executive, according to newspaper reports.

Mothercare has been seeking a replacement since the out-going chief executive Chris Martin left abruptly in July, following a year of falling sales and profit warnings.

New chairman Ian Peacock, who took over from Alan Smith at the beginning of August, is reportedly in discussions with the ex-Bhs boss Terry Green about taking up the role.

Mr Green is believed to have asked for a free rein in appointing a new management team if he accepts the chief executive position.

Baby blues

Mothercare has seen its share price halve in the last year as it warned three times that its profits would not meet expectations.

It blamed a move to a new warehouse in Daventry, which led to stock shortages and escalating costs.

But Mr Peacock's appointment has been seen as the start of a boardroom shake up. Newspaper reports on Sunday also suggested a management incentive plan would be introduced.

If Terry Green accepts the chief executive slot, he and his team will reportedly need to restore profits to about £30m.

In the last financial year, pre-tax profits slumped from £10.2m to £4.2m.

Mr Green has reportedly already chosen a number of his key directors including Phil Cox, a former finance director at food retailer Asda, to lead the commercial team.