Country Casuals on counter-attack
Sunday 22 October 1995
The company is expected to challenge his demand for compensation for loss of office, to claim he was responsible for some of the lingering problems at its troubled Elvi chain, and to contest his valuation of the company at pounds 26.8m, calculating that a price of 170p per share would be fairer than the 140p on offer from his company, Ciro Holdings.
The compensation claim stems from Mr Shannon's abrupt departure last year, shortly after Country Casuals issued a profits warning. Both sides agree that the split followed his insistence that his pounds 106,000-a-year rolling contract be doubled in length to two years.
In its offer document, Ciro said that if its bid succeeds, Country Casuals will - in addition to giving him a fixed two-year contract worth pounds 152,000 annually - give him pounds 128,100 to settle the compensation claim. less than Mr Shannon's original outstanding demand for pounds 170,000.
But sources close to the company said the only formal outstanding claim it is aware of from Mr Shannon was one before an industrial tribunal, which would involve a maximum payout of just over pounds 12,000.
The acrimonious fight between former friends has already begun to focus on the Elvi chain, which sells clothes to larger women. Ciro said at the weekend it plans to convert or sell the Elvi shops within six months of taking over.
Management countered that the loss-making chain was making progress, said it remained committed to the venture, and complained about the "uncertainty" created by Ciro's announcement.
In the defence document, due out by Thursday, it is expected to escalate the bitter debate by claiming that much of Elvi's trouble is due to onerous leases signed while Mr Shannon was at the helm. Mr Shannon will probably counter that management has had a year to turn things around but has not.
- 1 Planes go hybrid-electric in important step to greener flight
- 2 Antonio Martin shooting: Police and protesters clash over teenager's death just five miles from Ferguson, Missouri
- 3 British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
- 4 Hip hop is both racial and political, and for Iggy Azalea to suggest otherwise is insulting
- 5 Man hospitalised with pneumonia after downing eggnog at office Christmas party
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...