Boardroom coup succeeds as Dignity chairman voted out

Clive Whiley

Dignity’s chairman Clive Whiley has been ousted by an activist investor in a move that has seen three other directors resign.

The Sutton Coldfield-based company’s biggest investor Phoenix UK Fund had called a vote on his leadership and were backed by 55% of shareholders in their bid to remove Whiley.

Dignity has not been far from a crisis for the past three years and the latest moves add to the disruption at the funeral group.

Its shares are trading around 75% lower than in November 2017, despite a recent bounce from 515p to 645p since Phoenix went public with its plans.

Since 2017 it has been affected by a price war in the sector which slashed profits, a CMA investigation into industry practices, and the departure in April 2020 of former chief executive Mike McCollum after 11 years in charge.

Whiley, who is also chairman of Mothercare, had taken an executive role since McCollum’s abrupt departure and no chief executive has yet been appointed. In December finance director Steve Whittern and corporate services director Richard Portman also left the company.

Phoenix took action in March to start the process of removing Whiley, culminating in today’s general meeting.

Shareholders also voted 61% for Gary Channon, who represents Phoenix, to join as an executive director.

Whiley has ceased to be a director of the company with immediate effect.

Meanwhile, each of the independent directors, Gillian Kent, Dean Moore and Paul Humphreys, believe their positions as directors as a result of the resolutions being passed will be “seriously compromised”.

Kent and Humphreys have resigned from the board with immediate effect while Moore, who is the interim executive finance director, has tendered his resignation but has said he will work his three months’ notice if the new board wish him to.

The newly reconstituted board comprises Gary Channon, James Wilson and Andrew Judd.

Dignity’s board had urged shareholders to vote against both resolutions proposed by Phoenix. Last month, the company’s independent directors called the move by Phoenix “wholly unnecessary” at a time when they say the company has been making “significant progress” on a “root and branch” internal review.

Today, acting chairman Dean Moore said: “At the request of a number of the company’s larger shareholders, since this shareholder meeting was convened, the independent directors have held substantive discussions with both Phoenix and Clive Whiley in order to try and find a mutually acceptable solution which would allow the company to benefit from the continued involvement of both Clive Whiley and Gary Channon (as a representative of the company’s largest shareholder) in developing the company’s strategy for the consideration of all shareholders.

“A proposal was put to Phoenix whereby Clive Whiley would continue as chairman, but in a non-executive capacity, with Gary Channon being appointed as interim chief executive officer until a more permanent appointment can be made.

“In spite of the best efforts of the independent directors and the willingness of Clive Whiley to proceed in this manner, unfortunately it has not been possible to reach such a compromise.”

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