Another Marks and Spencer corporate cull began last week as chairman Luc Vandevelde welcomed new blood to the board. But fresh arrivals Roger Holmes and Roger Norgrove did little to allay City concerns about poor performance. Holmes will join from Kingfisher with no experience in the M&S core field of clothing. He will rely on his team for decisions said an analyst. Chief executive Peter Salsbury's departure was accompanied by those of Clara Freeman, executive director of UK stores and group personnel, and executive director Guy McCracken. An analyst said M&S had bought itself grace with the City by recruiting new board members. "All but one of the old guard have now gone. The old culture was entrenched, inward looking and arrogant. A lot of M&S sacred cows, such as not accepting credit cards, were business suicide." Vandevelde will assume responsibility as chief executive from Salsbury. Dire sales and profits figures came out in the accompanying trading statement and analysts cut this year's profit forecasts from £1.1bn in 1998 to £500m. An analyst said: "There has been an acceptable increase of more than 2% in M&S food, where ranges rotate often and imaginatively. Clothing is dragging it down. There must be a 100% overlap in M&S food and clothes customers to benefit both areas." Another City source wondered if M&S could find a way to float off its successful food and homewares businesses. M&S is, in theory, vulnerable to takeover, but City experts could not think of a likely buyer. {{NEWS }}

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