Marchpole directors forced out

By SARAH BRIDGE FOR THE MAIL ON SUNDAY
Updated:

 

REBEL shareholders have succeded in ousting the board of Marchpole, the troubled Yves St Laurent menswear licensee.

Former chief executive and 26% shareholder Michael Morris had threatened to drive out the directors at a special meeting and replace them with his allies.

Instead, this week the board members, led by chairman Ian Gray, will bow to shareholder pressure and stand down after the resolution of a dispute over expenses and consultancy fees.

Morris was sacked as chief executive in February 2000 and has become embroiled in a legal battle over claims that he spent company cash on himself.

Accountancy firm Deloitte & Touche, called in to settle the row, is expected to broker a deal by the middle of this week, which could see Morris pay back as much as £200,000. A dispute over £175,000 consultancy fees claimed by Morris will also be resolved.

Marchpole's new board, to be led by Christopher Philips, chairman of property valuer Collins Erdman, includes Ben Sherman founder Bill Walker, former Burton managing director Greg Tufnell and accountant David Mattey.

Former Marchpole director Adam Reynolds said the board had turned round an ailing company and secured the YSL licence for the next four years.

He added: 'We don't want a civil war. The old board did very well, but the key now is going forward.'

A former executive has written to the Department of Trade and Industry urging it to investigate Morris's financial dealings. Reynolds this weekend denied he had been in contact with the DTI.

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