Exclusive - Micro Warehouse suffers as staff exodus continues

Claims of mismanagement and low morale dog vendor's European operation.

Micro Warehouse's European operations are under pressure as theeration. reseller suffers a mass exodus of senior staff - both resignations and voluntary redundancies - amid allegations of low morale and ongoing mismanagement at the group.

Details of the departures have surfaced following confirmation that the company has not yet found a replacement for Jeffrey Sheahan, former Micro Warehouse European president and UK managing director.

Sheahan gave up his position last month to join Onsale, a rival online auction reseller based in the US. The departure means Warehouse has no permanent managing director for its UK or French arms.

Sheahan's defection was one of a long list of senior staff departures during the past six months. It includes Phil Holt, European chief financial officer, Simon Keeping, director of European marketing and Doug McDonald, director of European advertising.

The director of publishing and director of production - who were in charge of producing the group's catalogues - have also departed.

Steve England, executive vice president of international sales, who was a member of the group's Executive Committee, also officially left last week. According to another former director, England had not worked for Warehouse in an active role since May.

Rival mail-order resellers, including PC World Direct and Action Computer Supplies, are understood to have been inundated with applications from ex-Warehouse employees. A number of staff have already secured jobs with rival companies.

A former Micro Warehouse employee - who asked to remain anonymous - said: 'The European side of the company's Mac business is in meltdown. The US has no clue how to handle the situation.'

Warren Kaufman, assistant general counsel for Micro Warehouse, said: 'All the departures are a result of the European restructuring operation which saw the closure of the Bracknell headquarters last year.'