Carpetright reshuffles top roles as its founder takes a step back

The Conservative peer will be replaced by Darren Shapland, currently a non-executive director at the firm, who served as its finance director from 2002 to 2005 before leaving to join Sainsbury’s.

Harris said: “Darren knows our business well and I am confident he will make a huge contribution to its future.”

Shapland surprised the industry last July when he stepped down from Sainsbury’s, ending speculation that he would become the supermarket’s next chief executive.

Carpetright has issued two profit warnings this year, blaming weak bed sales and a deterioration in trading in continental Europe. It made £16.9 million in its previous financial year but now estimates underlying profits for the year to 28 April will be in the region of £3m-£4m.

Baroness Noakes, the company’s senior non-executive director, will become deputy chairwoman.

She said: “Lord Harris has been in the carpet business for over 50 years and he has built Carpetright from scratch since 1988. He is a hard act to follow and the board is pleased that he will stay with the company as chairman.”

A spokesman for Carpetright said Harris would initially work four days a week as chairman before gradually reducing his day-to-day role.

The group also said that executive directors Claire Balmforth and Andy Corden will stand down from the board so it can retain an “appropriate balance” between executive and non-executive directors for corporate governance purposes. They will keep their responsibilities for UK and European operations

Carpetright was founded in 1988 in east London, and was floated on the London Stock Exchange five years later. It now has 679 stores across Europe.