Simon Herrick, who has been working as the chief financial officer of department store chain Debenhams, has stepped down from the post after the company said still has lots of stock after the Christmas sale.

The retail giant has confirmed that Herrick is leaving the company. He will receive £500k as pay check for the next one year if he does not find another job for the entire year. Debenhams chief executive Michael Sharp expressed his gratitude towards Herrick for his service towards the company in the previous two years.

Britain's second-biggest department store has said that its profit in the first half of its financial year is expected to fall to £85 million from £115 million as the company will be forced to offer higher discount in order to be able to clear winter stock. Mr Herrick had written to Debenhams' suppliers asking them to offer discount on all orders.

Chief executive Michael Sharp said: "I would like to thank Simon for his hard work and ­contribution in the past two years. We wish him well."

Debenhams said Herrick would continue to get his £410,000 annual salary, £18,375 in annual benefits and an annual pension contribution of £61,500 in monthly payouts during the next 12 month notice period.