DSG international (DSGi) has appointed a new chairman as the electricals retailer continues to restructure.

Seven months after current chairman Sir John Collins announced his intention to step down in September this year, DSGi has chosen his successor in the form of Deutsche Post World Net chief financial officer John Allan.

Allan immediately admitted the retailer, which has recently seen its credit cover reduced by both Euler Hermes and Atradius, is at a critical juncture in its history.

Last week the retailer announced it was targeting a further £20m in cost cuts in its current fiscal year after like-for-like sales in the Christmas period fell by 10 per cent.

Allan said: “I am delighted to be joining DSG international at this important time in its development. The group has many challenges as well as significant opportunities under the Renewal and Transformation plan.”

Allan has also held management and marketing roles at Lever Brothers, Bristol-Myers, Fine Fare Limited and BET plc.

Andrew Lynch, senior non-executive director at DSGi, said: “John is a highly-regarded executive with a strong track record. He brings to the Group a wealth of large multinational company experience from areas including marketing, service, and corporate management, and I know he will make a valuable contribution.”

It is expected that Allan will join DSGi board as a non-executive director ahead of his appointment as chairman to help with the handover.