Matalan's chief executive, Angus Monro, has quit the company following pressure from his fellow board members.

According to a statement from the company, Monro will be replaced by the company founder John Hargreaves.

Monro has announced that he was looking to move on from the company within the next two to three years, but company directors felt that this would interfere with the company's aggressive expansion plans and agreed that it would be best for him to leave at an earlier date.

The news of Monro's departure has sent Matalan's share price plummeting, dropping more than 15 per cent from 549.5 pence to 465p.

However, investment bank Goldman Sachs has since added Matalan to its 'recommend' list and its stock to 'outperform', citing that it believed the retailer to back on track.