Matalan CEO Jo Whitfield has made a shock departure after less than two years at the helm

Jo Whitfield has stepped down after just over 18 months at the business.

The fashion retailer announced that Whitfield is leaving the business to “pursue a portfolio career”.

Whitfield was appointed as the retailer’s new chief executive in March last year, marking her return to Matalan having previously been its head of finance between 2002 and 2008.

Matalan said that under her leadership, Matalan made “significant progress” in its turnaround strategy including in the rebuilding of its top team and re-establishment of its “value credentials”.

Matalan chair Karl-Heinz Holland will act as executive chair until a successor is named.

Matalan also confirmed a search for Whitfield’s replacement has already begun.

Whitfield said: “It has been a fast-paced transformational 18 months and I am proud of everything that the Matalan teams and I have achieved.

“We have reset the business foundations against a very challenging backdrop, have improved profitability in the first year and developed a strategy to take the business forward. We have fundamentally improved our product offering and re-established our reputation for providing great value and quality for customers.

“We have invested in colleague pay and established a new leadership and executive team to take the business forward. Now feels the right time to pass the baton as the next phase of the transformation continues. I am confident that Matalan will continue to thrive and I wish my colleagues and leadership team every success for the future.”

Holland added: “I want to thank Jo for her leadership of Matalan and wish her well for the future. She has led the team that has stabilised the business and, perhaps most importantly, she has put customers and colleagues back at the heart of everything we do.

“Matalan is a business with strong fundamentals and remains on a firm financial and operational footing. The board has every confidence that we will deliver our strategic plan.”

During her career, Whitfield has also been chief executive of the Co-op’s food division and held several senior leadership positions at Asda.