Card Factory originally pledged to have 40% of its board be female by December 2024, but has now indicated that it will not recruit another female director to meet diversity requirements.According to the Wakefield-based store, hiring a new director just to meet the 40% recommendation "does not consider it to be in the interests of shareholders." The decision reversals the company's earlier pledge, which was stated as a "specific objective" in this year's annual report, to achieve the minimal level of female participation on boards of listed companies. The corporation currently has two women on its six-member board, which makes up one-third of the membership.This falls below the Financial Conduct Authority's recommended 40 per cent minimum level for female representation on the boards of listed companies.The announcement follows chairman Paul Moody surviving a challenge to his leadership over board diversity concerns at the company's AGM in June.

Twenty-five per cent of shareholders voted against Moody's reappointment, prompting the board to seek consultations with its 12 largest institutional shareholders.Only four shareholders engaged in the consultation process, but all of them expressed support for Moody, who has served as non-executive chairman since October 2018.

The shareholders who opposed Moody's reappointment had raised concerns about the board's composition failing to meet diversity targets set by the Financial Conduct Authority.

In a new statement, Card Factory addressed its board composition, saying it had "recently re-assessed the skills and experience of its members and consider this to be appropriate for the company's operations and strategic objectives".The board acknowledged diversity considerations but maintained its position against further appointments.

"The board recognise the diversity of its membership and does not consider it to be in the interests of shareholders to recruit an additional director solely to achieve the 40 per cent recommendation", the company said.

Card Factory added that it would "keep all aspects of experience and diversity under review".

Responding to the decision, former Tory MP Dame Andrea Jenkyns said: "Well done to the Card Factory for refusing to hire people purely to hit their diversity targets."

Jenkyns, who was recently unveiled as another Tory defector to Reform UK, added: "We should be a meritocracy and hire the best people for the job."