Storehouse yesterday parted company with its perennially optimistic chief executive, Mr Keith Edelman. His departure comes after six years of under-performance from the owner of the BHS and Mothercare chains.

Investors are understood to have expressed their dissatisfaction with Mr Edelman following last week's profit warning, which knocked 11 per cent off the already discounted shares.

Mr Edelman is the latest in a list of recent departures from some of Britain's best known companies. Although Mothercare is Britain's best-known children's equipment and clothing retailer, drawing 95 per cent of first-time mothers into its shops, the division still reported halved profits last week and admitted it was losing market share.

Mr Edelman tendered his resignation after a board meeting yesterday. It is understood the group's non-executive directors began discussions in the past week with Mr Edelman about his position after meetings with institutional investors.

The shares, which rose initially 18 per cent on the news, closed 7 1/2 higher at 118p (€1.81).

The market's perception has been that the group opted for short-term profitability by cutting costs rather than developing a strategy to drive growth.

Mr Edelman, on a salary of £369,000 sterling last year and a 12-month contract, will receive total compensation of up to £600,000. He will be allowed to keep his 1.1 million share options for six months. The lowest price at which the options are exerciseable is 167p, still substantially below the current share price.