Resignations suggest Victoria consortium will prevail

UNLESS there is a decisive rejection of its plans by shareholders at today’s general meeting, it looks increasingly likely that the consortium bidding to take control of Kidderminster carpet maker Victoria will be successful.

What has become an increasingly acrimonious power struggle took a new twist yesterday when the plc’s two independent non-executive directors – chairman Nicki Bennett and senior independent director Peter Jensen – resigned, stepped down from the board and left the company with immediate effect.

In a statement, Victoria said the decision had been taken solely on the basis that, based on proxy votes ahead of the general meeting, the board will not be in a position to overturn the demands of the consortium headed by former Victoria director Alexander Anton and New Fortress Finance Holdings. The consortium is keen to take over the firm and is urging shareholders to back its campaign to maximise value from the business.

Both sides will be able to put their case at the meeting this afternoon, which is being held at the Birmingham offices of law firm Wragge & Co.

Alan Bullock, group managing director of Victoria, speaking on behalf of the executive board, said: “It is with sadness that we as a board and business have lost two such talented and experienced independent directors, enabling the Requisitioners to gain control of the board without still telling the vast majority of shareholders their real strategy for the business.

“Despite the current board having received the support of nearly 90% in number of those shareholders who have cast a proxy vote, we have to reluctantly accept that the independent non-executive directors would be required to step down from the board at tomorrow’s general meeting.”