Lace, lingerie and swimwear producer Sherwood Group on Wednesday said it was "business as usual" despite the sacking of CEO Mike Basford and a police investigation.

Sherwood, which supplies high street firms including Asda, Debenhams and Bhs, has handed non-executive chairman Noel Jervis control of its executive responsibilities until a new chief executive is appointed.

Mr Jervis told the Daily Telegraph that Mr Basford has been "summarily dismissed without compensation for breach of his employment contract."

"There has been a corporate misdemeanour but corporate governance got on top of this very quickly," he said. "The business is not impaired, there is no black hole. We have been reassuring our employees and customers that it's business as usual."

The company is due to reveal its interim results tomorrow.