Torex Retail's new board has terminated the former chief executive's contract as it prepares to receive a second round of bids for the troubled IT company.

Neil Mitchell, who joined Torex Retail In September last year, stepped down from his role in January but remained on the company's board after the group issued a profits warning and suspended its shares. That same day, Christopher Moore, chairman at Torex, also stepped down and eventually resigned from his post in March.

Torex said today that Mr Mitchell’s employment had been terminated “and he has resigned as a director of the company with immediate effect”.

Keith Taylor, a turnaround expert who joined Torex on February 7 as acting chief executive, has now been awarded the job permanently. Marcus Leek, the finance director at Torex, is the only member of the original management to remain at the company which is under investigation by the Serious Fraud Office, the Financial Services Authority and the London Stock Exchange.

The new management has put Torex up for sale and is expecting a second round of bids for the business to arrive today. It is understood the board is encouraging bidders to investigate buying out Torex's operating assets as opposed to the business as a whole. Torex is carrying £300 million in debt and liabilities, and its main creditor is Royal Bank of Scotland.

The company is also hoping to publish its delayed full-year figures as soon as an audit of its numbers has been completed. Torex is being advised by Deloitte, the accountancy firm, and lawyers at Linklaters.

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