Debenhams chief financial officer Simon Herrick has resigned just days after the department store chain issued a profit warning following a disastrous Christmas trading period.<br /><br />Herrick, who joined Debenhams only two years ago, has been under increasing pressure from investors following its profit warning in February 2013 and surprises to profit guidance since.<br /><br />Sources close to the company said Herrick was not being made a scapegoat for Debenhams’ terrible Christmas trading which saw it issue a profits warning on New Year’s Eve, prompting the shares to tank by more than 12 per cent. One source said: “Michael Sharp [the chief executive] is very clear that the buck for Christmas trading stops here.”<br /><br />But analysts pointed out that it was Herrick who sent out a so-called “Santa tax” letter to suppliers just eight days before Christmas, asking for a 2.5 per cent discount on their supply prices. That was seen as a last-minute attempt to boost falling profit margins.<br /><br />Herrick had previously come under fire in October when Debenhams’ half-year results revealed that it had spent £7.5 million moving its head office to Regent’s Place in Euston. Analysts and investors said the scale of these costs had not been flagged up by Herrick.<br /><br />Similarly the £25 million refurbishment of the flagship Oxford Street store, which was completed in time for Christmas, caused considerably more disruption to trading at the store than analysts had been led to expect.<br /><br />One investor said: “Simon is incredibly straight talking, which is normally a good thing. But he has clearly failed to manage the market’s expectations.”<br /><br />Debenhams’ shares fell by 37 per cent in 2013. Today they fell another 1.8 per cent to 71.7p.<br /><br />Herrick will be paid one year’s salary of £410,000, perks worth £18,000 and a pension contribution of £61,500. All three will be paid on a monthly basis and halted if he takes another job. He will also receive up to £10,000 plus VAT for legal fees.<br /><br />Neil Kennedy, director of finance, will take on Herrick’s role temporarily.<br /><br />Debenhams reported just 0.1 per cent growth in same-store sales for the past 17 weeks with none of the expected uplift in the week before Christmas. John Lewis today reported a 6.9 per cent uplift in the past five weeks but said online provided most of the growth.<br />