Directors feud as Bhs plans flotation

By TEENA LYONS
Updated:

 

A BOARDROOM row has rocked Bhs - just as maverick entrepreneur Philip Green prepares the stores group for flotation next year.

Green and his powerful boardroom duo of former Asda boss Allan Leighton and Terry Green, former Debenhams chief executive, are determined to present a united front in the run-up to a City charm offensive, expected to begin in April.

But Bhs insiders have revealed details of a fierce argument between chairman Leighton and chief executive Terry Green. The dispute is thought to have contributed to Leighton's recent decision to scale down his involvement with the company that Philip Green bought from Storehouse for £200m 18 months ago.

The row was sparked by the appointment of a new marketing director in June. Leighton is said to have infuriated Terry Green by recruiting his former Asda colleague Gwyn Burr and instructing her to report direct to him. The previous marketing director, Jane Hayman, had worked with Terry Green and he objected to the new arrangement.

Philip Green was forced to intervene, according to the source, and Burr has since gone to work for Leighton in 'operations' at his Going Plural group. Going Plural is the company behind Leighton's numerous directorships at companies including Lastminute.com, Leeds United, Dyson and BSkyB.

Leighton and Bhs strongly denied rumours of a split - and speculation that he would quit the company. Leighton added that he had always intended to scale down his responsibilities as chairman.

It is believed Philip Green will not be seeking a stock market listing until after the company's financial year-end next April. Bhs could be valued at about £800m.

Last year's profits rose from £12.5m to £31.5m on sales of £1bn. Profits are expected to reach £60m in the present financial year.

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