Carpetright founder steps down after 24 years

Lord Harris is a self-made millionaire who made his fortune through selling carpets for more than half a century and founded the group in 1988

Lord Harris of Peckham. Photograph: Andrew Winning/Reuters

Lord Harris is ending his 24-year reign as chief executive of Carpetright, with the struggling flooring specialist announcing the former finance director of Sainsbury's as his replacement.

The move comes a fortnight after the retailer issued its seventh profit warning in just over year, triggered by rising living costs and a moribund housing market. Lord Harris is a self-made millionaire who made his fortune through selling carpets for more than half a century and founded the group in 1988. However, the educational philanthropist and Conservative party donor will maintain an influential role at the business by retaining his position as chairman.

His replacement is also no stranger to the company. Darren Shapland is a non-executive director at Carpetright and was the firm's finance director between 2002 and 2005. Shapland then left to take up the same role at Sainsbury's, later becoming group development director. Lord Harris said: "I am confident he will make a huge contribution to the future of the business." Carpetright also announced that the heads of its UK and European businesses will step down from the board in order to retain "an appropriate balance" between executive and non-executive directors.

Sheila Noakes, Carpetright's senior independent director, paid tribute to Lord Harris. "He is a hard act to follow," she said. A Carpetright spokesman said Harris would initially work four days a week as chairman before gradually reducing his day-to-day role. Harris's son Martin is the firm's commercial director. In Carpetright's latest profit warning, the company said annual profits would be between £3m and £4m, a sharp decline from previous forecasts of between £12m and £17m.

Shapland said: "I am delighted to be appointed as chief executive of the Carpetright business and I am looking forward to working with Lord Harris and the team in the future development of the business." Shares in Carpetright closed up 1.2% at 625.5p, valuing the business at £417m.