Best & Less has dumped its new chief executive three months before she was set to start in the role.

Erica Berchtold was plucked from The Iconic in April, and named CEO of Best and Less. She was set to start the role in September.

Instead, Ray Itaoui, the former Sanity owner, who recently acquired a controlling stake in Best & Less with Brett Blundy, will take the reins.

Best & Less told shareholders this morning they had “agreed not to proceed with her appointment”, adding, “Mr Itaoui has considerable retail experience, having operated successful Australian and global retail businesses for more than two decades, including iconic brands such Sanity, Bras N Things and Honey Birdette.”

This comes in the same week that Best & Less reported like-for-like sales had slumped by 13.2 per cent over the past five weeks.

The retailer slashed its profit guidance for the second half of fiscal 2023 by 65 per cent, now expecting net profit of between $3.6 million and $4.2 million for the six months – a long cry from the previous guidance of $10 million to $12 million.

Itaoui said that “decisive action” is needed to turn the retailer around in these “challenging trading conditions”.