Hornby a 'leading candidate' for Boots top job after leaving HBOS

Published on Sunday 7 June 2009 21:09

THE man in charge of HBOS at the time of the bank's near-collapse is in the running to be chief executive at one of Britain's best-known retailers.

Alliance Boots confirmed yesterday that Andy Hornby – who was at the helm of HBOS when it was taken over by Lloyds TSB – is a "leading candidate" for the job.

A company spokesman said: "Alliance Boots confirms it is currently engaged in discussions with Andy Hornby, who is a leading candidate for the role. It hopes to complete the process shortly and a further announcement will be made at that time."

Hornby became chief executive of HBOS in 2006, taking over from Sir James Crosby.

In the late 1990s he was poached from Asda to run Halifax's retail arm. Hornby initially continued in that role once Bank of Scotland merged with Halifax in 2001 to create HBOS.

He left HBOS following its rescue takeover by Lloyds TSB and the injection of 17 billion of taxpayers' money into the enlarged group, waiving his entitlement to a 1 million pay-off.

He apologised to the Treasury select committee earlier this year for HBOS's mistakes, including what turned out to be deeply risky commercial property investments.

One City analyst said yesterday: "What brought HBOS down was 14bn of corporate banking losses at Bank of Scotland and Hornby cannot walk away from that responsibility. Even if some of the risky investments were made under his predecessor, the buck stops with the boss."

However, another analyst said: "Most of Hornby's time at HBOS he ran the retail arm, rather than the corporate business that caused the problems.

"I think he would also welcome the fact that Alliance Boots is privately-owned, so not subject to the same public spotlight."

By taking a job outside the financial sector, Hornby would also not need approval from the regulator, the Financial Services Authority. It is currently conducting an investigation into the banking crisis.

Hornby is also a non-executive director of Home Retail Group, which owns the catalogue shopping business Argos and DIY chain Homebase.

Alliance Boots was taken private in an 11.1bn takeover in 2007 by executive chairman Stefano Pessina and US private equity firm Kohlberg Kravis Roberts.