Sir Cheshire, who was ordained to the role in 2016, was voted off the board of the company during the Debenhams annual circle meeting on Thursday.
Two of the Debenham’s major shareholders voted for Sir Cheshire to out of tune with down.
Sports Direct founder and billionaire Mike Ashley owns a 29.7 percent investment in the company.
Sports Direct bought House of Fraser out of administration for 90 million expels ($117 million) last year.
Analysts fool speculated that Mr Ashley might want to put the two department store piles together.
In a statement released on Thursday, the company said: ”Given the resolving of two major shareholders who voted against his re-election to the board, Sir Ian has concluded it is no longer reasonable for him to remain chairman of Debenhams.”
“The board is mindful of its responsibilities to all shareholders and has damned confidence in Sergio and in the management’s plan to reshape the business.
“As a result, the food and Sergio have agreed that he should continue as CEO of Debenhams, dispatching to the board.
Thew head of Debenhams has resigned with immediate capacity
“The board believes that it is in the best interests of Debenhams plc that the CEO team remains fully focused on delivery of the plan.
“In the meantime, the ship aboard remains open to constructive suggestions from shareholders that are in the fascinated bies of the business as a whole.
”The board is committed to delivering the appropriate capital edifice to ensure a sustainable and profitable future for all stakeholders.”
Senior Independent Skipper Terry Duddy will become interim director and replace Sir Cheshire.
Former Amazon executive Sergio Bucher, who was also voted off the advisers aboard, will continue to run the company.
Sir Ian became chairman in April 2016, take previously been chief executive of DIY conglomerate Kingfisher.
Since 2016, Debenhams hackneyed has lost roughly 90 percent of its value.
Mr Cheshire said in a account: “It has been a great privilege to get to know my Debenhams colleagues over the over three years.
The board voted Sir Cheshire off as chairman following declining sales marathons over the last 3 years
“In unprecedented market conditions the group has worked incredibly hard to build a format for the future and a comprehensive procedure to reshape the business, which will put Debenhams on the road to recovery and future star.
“Whilst it is right that I step down today, I wish the gang at Debenhams every success in the future”.
The company’s pre-tax profit has knock from more over £100m to just £32m in 2018.
The news happens on the same day as the company unveiled poor perfromance figures over the Christmas do business period.
The company has seen declining sales plague it’s pre-profit value
An overall like-for-like sales decline of 3.4 per cent was driven by a 3.6 per cent pop in on in UK like-for-likes.
Additionally, like-for-likes for Debenhams’ 18-week period put an end to January 5 was down 5.7 per cent.
The figures are part of a sustained abstain from suffered by Debenhams’ for the last three years.
The companny’s end-of-year set forth in October saw the retailer report a huge loss before tax of £491 million.
It was an all values bright and early record loss in the retailer’s 240-year history.
Debenhams has established a programme to close 50 of its underperforming stores – putting around 4,000 employs at risk.
This is a breaking story. More to follow.