Morrisons denies reports that David Potts is to leave

A Morrisons insider said that reports of Mr Potts’ departure were inaccurate.

The insider said: “There may be some crossed wires here. David has certainly not signalled to anyone an intention to step down in two years.”

Mr Potts has been chief executive of Morrisons since March 2015 and is highly regarded in the grocery industry.

A former Tesco veteran, he has overseen a transformation of Morrisons since he was parachuted in seven years ago to revive the grocery chain.

In a recent interview with the Yorkshire Post, Mr Potts said that new owner CD&R has promised that Morrisons’ head office will remain in Bradford and there are no plans to sell the freehold store estate. It is also “fully supportive” of a minimum pay award of £10 an hour and it has reached a deal with pension trustees to provide more support.

In the interview, Mr Potts also said that he has no intention of leaving.

Asked where he will be in a year’s time, he said: “I very much hope to still be working at Morrisons as chief executive.”

Reports had suggested that Morrisons’ new private equity owner had started a search for a new chief executive after Mr Potts had signalled his intent to stand down in about two years.

They said that CD&R had enlisted headhunters from Skill Capital to find a replacement for Mr Potts. They also said that Skill Capital began approaching potential candidates towards the end of last year.

Morrisons’ respected chief operating officer, Trevor Strain, has long been seen as the top candidate for the CEO’s role, when Mr Potts, who is 64, does decide to leave the grocery chain.

Mr Potts joined Morrisons at a time when it was struggling after over-spending on non-essential items.