29/05/2017 02:20 AST
Marka, the Dubai-based retail group that has yet to make a profit after more than two and a half years of trading, has ended its search for a new chief executive.
Benoit Lamonerie assumed the role on Sunday, the company said in a release on the Dubai Financial Market.
Khaled Al Mheiri, Marka's vice-chairman and managing director, had been serving as the company's interim chief executive since the resignation of Nick Peel in December.
Marka said that Mr Lamonerie "has over the last 20 years, led and managed major projects in the retail, hospitality, entertainment and real estate sectors, both locally and in listed companies and internationally".
According to his LinkedIn profile, Mr Lamonerie was the sales and marketing manager of Dubai Autodrome when he arrived in the UAE in 2004 to 2006.
He then joined Union Properties and was the company's general manager until 2009. For the past eight years, he has worked at Gulf General Investment Company as its chief executive.
The release said: "We believe that his significant expertise and strong knowledge will be vital in leading the company through its next phase of business growth."
The news may come as a respite from the negative headlines hitting the group and the wider retail sector.
In February, Marka said it planned to rejig its portfolio of brands and continue with a programme of "extensive cost-cutting" after posting a second annual loss and missing its target to be in the black after two and a half years' trading.
Marka's first quarter loss widened to Dh27.8 million from Dh18.1m in a year-earlier period.
Marka has struggled against a contracting economy and a strong dollar making the UAE an expensive destination for many of its key tourist markets.
The company operates three divisions - Marka Sports, Marka Hospitality and Marka Fashion. It has been on an aggressive expansion plan, opening at least 50 outlets across retail, food and beverage, and kids entertainment sectors. Its outlets including Reem Al Bawadi restaurants and Harpers Bazaar Cafe, all primarily in Dubai. Marka also has interests in Abu Dhabi's Yas Mall with the UEFA Champions League Experience.
The company listed in Dubai in September, 2014 at the height of the food and beverage boom.
"It is common knowledge in the market that Marka is looking for more money," said Abdul Kader Saadi, managing director of Glee Hospitality Solutions.
He said Marka came into the market when valuations and real estate where at a relative peak.
"Marka's financial backing meant they were paying more for concepts and real estate above everybody else and this caused a rise in industry costs for staff, talent and outfit for everybody else."
At the beginning of this month Marka agreed to sell its 60 per cent share in the children's indoor play area operator, Cheeky Monkeys, just two years after purchasing it for Dh30 million.
Mr Peel, before his resignation, had described Cheeky Monkeys as 'recession proof.'
The National
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