Gordon was appointed as the head of the Mothercare group, which also owns the Early Learning Centre, in 2002 and was credited with turning around the troubled brand, which was close to bankruptcy.
New Mothercare chairman Alan Parker, the former head of Whitbread, will take over the reins in the crucial run-up to Christmas until a replacement chief executive is found.
It is understood Parker had become frustrated at the lack of progress being made at the British arm of the business.
Gordon had overseen the successful international expansion of the business, which now operates franchises in 55 countries, but was unable to halt falling sales in the UK.
Last week's profit warning saw Mothercare's share price fall by over 30% after Gordon reported UK sales had fallen 9.6% over 12 weeks to 1 October.
Gordon's early success at Mothercare resulted in him being linked to various high-profile retail roles, including the chief executive job at Marks & Spencer.
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