Move launched to oust Stobart Group chairman as bitter row intensifies

The bitter row at Cumbria firm Stobart Group is showing no signs of easing.

North West entrepreneur Philip Day, the owner of Peacocks and Edinburgh Woollen Mill, has been nominated to take over as chairman of the firm.

The move is part of the ongoing feued between the board and its former chief executive Andrew Tinkler.

Several of Stobart’s biggest shareholders, including fund manager Neil Woodford’s Woodford Investment Management, are backing Mr Day to replace Iain Ferguson as chairman.

The firm issued a statement to the Stock Exchange this morning.

It read: “The company announces that it has received a requisition from shareholders holding in excess of 33% of the company’s voting capital to nominate Philip Day to be elected as a director of the company either at its forthcoming annual general meeting or at a subsequently convened general meeting and to invite the board to nominate him as chairman.

“The shareholders comprise Andrew Tinkler, executive director, funds acting through Woodford Investment Management Limited and Allan Jenkinson.

The board, through its nomination committee, had separately identified in the ordinary course an excellent female candidate to replace John Garbutt who is standing down at the AGM.

“This candidature has been placed on hold pending the outcome of the AGM.

“The board will convene a general meeting of the company in accordance with its articles of Incorporation in due course to put Mr Day’s election as a director to a shareholder vote.

“In addition, the nomination committee will consider Mr Day’s candidature and will advise shareholders in due course of its recommendation in relation to board appointments.”

Last week, Stobart’s board published a highly critical statement of its former chief executive who is trying to oust Iain Ferguson.

Mr Tinkler still owns a 7.7 per cent stake in the company.

He has issued a statement stating his only objective is to “ensure that the company sticks to the agreed company strategy”, and that a change of chairman would help deliver this.

The former chief executive also accused the board of Stobart Group of defamation.

Mr Tinkler said: “I very much regret that the chairman has resorted to personal insult in this discussion.

“I warned the chairman and his supporters on the board that the announcement issued on 29 May contains false and defamatory material about me, and information regarding the company that I consider to be misleading.

“Nevertheless, the chairman and his supporters authorised the release of the announcement containing that material.”

Last week the group said that it was postponing its annual general meeting scheduled for June 28 to a “slightly later” date.

The infrastructure and support services firm recorded profits of more than £100m last year.

The firm, which is based in Carlisle, underwent a management re-organisation but saw improvements in all of its operating divisions.