Public war of words at top of Stobart Group rages on

Th public war of words which is tearing the board of Stobart Group apart is showing no signs of calming down.

A detailed letter of the reasons for the sacking of the former chief executive of the Carlisle based infrastructure company was sent out to shareholders this morning.

Former chief executive Andrew Tinkler has been attempting to oust the chairman Iain Ferguson in an increasingly bitter battle.

And the letter urges shareholders to support Mr Ferguson.
Mr Tinkler has enlisted the support of North West tycoon Philip Day in his battle with the board.

Yesterday Mr Tinkler was sacked, and the Stobart Group board added that it will be taking legal action against the former chief executive.

Andrew Wood, an independent director wrote to shareholders this morning.

He said Andrew Tinkler’s move to oust the chairman and replace him with his own nominee ran totally counter to the firm’s management strategy.

He said: “It is his right as a shareholder to propose a change. However, his wider actions, particularly in writing to all employees, have now threatened to destabilise the Company and have put at risk the interests of all shareholders.

“This is why the Company had no alternative other than to dismiss him yesterday.
“Our Chief Executive and his management team are highly experienced in growing businesses and delivering value to all shareholders. They need to be able to do so against a background of stability supported by an independent board.

“This is why it is so important that you support the re-election of Iain Ferguson as a Director.”
He added: “When Andrew Tinkler advised the Board that he wanted to step down from his role as chief executive, we were delighted to welcome Warwick Brady, who was Andrew Tinkler’s choice as his successor.

“Since his appointment, first as deputy chief executive in January 2017 and then as chief executive in July 2017, Warwick has brought deep industry expertise and experience to the group that is well aligned with our strategy.”

 

He added: “Therefore, so as to bring order back to the company for the benefit of shareholders, employees and other stakeholders, Stobart Group summarily terminated his employment with immediate effect on 14 June and will today separately launch proceedings in the High Court to seek damages from him for, amongst other matters, breaches of contractual and fiduciary duties

“The Board is deeply saddened that the Company has been obliged to take such action. Andrew Tinkler had contributed greatly to the Group and the Board acknowledges his entrepreneurial flair and transactional skills. However, his behaviour was jeopardising the future success of the Group and the Board would have been derelict in its duties not to have acted decisively to preserve shareholder value.

“The Board is acutely focused on its duty to act in the best interests of the Company, including for the benefit of all shareholders. We feel Andrew Tinkler has failed in this duty.”

The full copy of the letter can be found here.

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