Lace lingerie producer Sherwood Group on Wednesday revealed it has fired its chief executive and called in the police.

The company said in a short statement that Mike Basford, who was also its deputy chairman, had been dismissed for breach of contract.

Before becoming chief executive in April of this year, Basford had headed the company's UK apparel operation.

Sherwood said further investigations into the undisclosed matter were now underway and non-executive chairman Noel Jervis would assume executive responsibilities until a new chief executive is appointed.