Jeweller Theo Fennell today parted company with chief executive Pamela Harper — and replaced her with her predecessor, Barbara Snoad.

Harper quit the South Kensington-based firm having taken over from Snoad in December 2007 to expand the business overseas and extend its range beyond jewellery.

Chairman Richard Northcott said at the time it was “a great coup” for the company, but today effectively admitted expansion in a recession and Harper's appointment were a terrible mistake.

And in a futher embarrassing move, Snoad was reappointed on the advice of founder Theo Fennell, who left last year but stayed on as a consultant.

Fennell's departure fired a four-month war of words over the use of his name.

The firm, which has a flagship store on Fulham Road and outlets in the Royal Exchange, Harrods and Selfridges, has been hit by the downturn and saw sales fall 21% in December.

The jeweller, which counts David Beckham, Elton John and Naomi Campbell among its customers, recently warned it will make a loss in the year to 31 March.