Johnson Service Group, the dry cleaning, corporate wear and facilities management business, removed its chief executive yesterday after only eight months as it agreed temporary banking facilities that grant the banks security over all its assets.

Johnson also gave warning that profits for next year would fall below expectations because of restructuring costs and higher interest charges.

The group of banks agreed to waive Johnson’s year-end covenant test in return for having security over its assets, for a fee and for higher interests costs. Johnson has also given security over its assets to its pension funds. The company said last month that it was in danger of breaching its covenants.

Johnson said that Charles Skinner, its chief executive since April, had left because “a different set of skills are required in the company’s current situation”. He has been replaced temporarily by John Talbot, a senior partner at Kroll Talbot Hughes, a restructuring advisory business.

Johnson has been restructuring and trying to sell its noncore specialist businesses – Workplace Engineering, Stalbridge Linen Services and Alex Reid, the specialist dry cleaners. However, in November it said that disappointing trading had deterred buyers willing to pay an adequate price.

Johnson has until the end of April to negotiate longer-term banking arrangements. Over the past 2½ years the share price has slumped from a high of 471p to 42p yesterday, after losing 2p on the day.

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