Northern Rock loses chief executive

LONDON – Northern Rock, the British bank severely damaged by the global credit crunch, said yesterday that chief executive Adam Applegarth has left the company earlier than planned.

Andy Kuipers, responsible for coordinating the bank’s sales and marketing, has been chosen to replace Applegarth, said Northern Rock as it also revealed that the credit crunch has cut the value of its investments by 281 million pounds. “I am confident that (Kuipers) is the right person to help manage the company through the strategic review process,” Northern Rock chairman Bryan Sanderson said in a company statement.Northern Rock, which has been up for sale since the global credit crunch forced it to seek emergency support from the Bank of England in September, added that talks were continuing with a consortium led by Virgin Group, its preferred bidder.Talks were also ongoing with investment firm Olivant Advisors and other unnamed suitors, the bank added.Olivant had Wednesday threatened to withdraw from the auction because it felt the bidding process was taking too long, newspaper reports said.Applegarth meanwhile said of his departure: “It is time to hand over to management who I’m confident will be part of the company’s future.I wish them and the board every success.”When he announced his resignation last month, Applegarth indicated that he would leave by February after 24 years with the bank.Northern Rock nearly collapsed earlier this year when its exposure to the US sub-prime home loan crisis sparked an unprecedented run on deposits, leading to a government bailout worth some 25 billion pounds.In a further sign of its troubles, Northern Rock will drop out of London’s leading FTSE 100 share index on December 24.In early trading on Thursday, Northern Rock stood down 3,53 per cent at 95,70 pence.The share price has collapsed from nearly 700 pence in early September.Nampa-AFP”I am confident that (Kuipers) is the right person to help manage the company through the strategic review process,” Northern Rock chairman Bryan Sanderson said in a company statement.Northern Rock, which has been up for sale since the global credit crunch forced it to seek emergency support from the Bank of England in September, added that talks were continuing with a consortium led by Virgin Group, its preferred bidder.Talks were also ongoing with investment firm Olivant Advisors and other unnamed suitors, the bank added.Olivant had Wednesday threatened to withdraw from the auction because it felt the bidding process was taking too long, newspaper reports said.Applegarth meanwhile said of his departure: “It is time to hand over to management who I’m confident will be part of the company’s future.I wish them and the board every success.”When he announced his resignation last month, Applegarth indicated that he would leave by February after 24 years with the bank.Northern Rock nearly collapsed earlier this year when its exposure to the US sub-prime home loan crisis sparked an unprecedented run on deposits, leading to a government bailout worth some 25 billion pounds.In a further sign of its troubles, Northern Rock will drop out of London’s leading FTSE 100 share index on December 24.In early trading on Thursday, Northern Rock stood down 3,53 per cent at 95,70 pence.The share price has collapsed from nearly 700 pence in early September.Nampa-AFP