Deal may clear Tillman

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The Independent Online
HAROLD TILLMAN, the former rag trade entrepreneur, has come nearer to clearing his name after a firm of reporting accountants reached an out-of-court settlement with receivers to Honorbilt, Tillman's one-time company, writes William Kay.

Mr Tillman has been under threat of disqualification as a company director by the DTI. He said: "The settlement between the insurers of Shelley Pinnick, the accountants, and Ernst & Young, the receivers, means a precedent has been set, admitting liability. This proves the group's demise was caused by the negligence of the accountants."

Shelley Pinnick reported on the value of Gallini, a company Honorbilt bought from Pentland Industries in 1988. After the purchase Gallini's stocks were found to be worth only half book value of £2m, and Hong Kong import licences were not secure.

That was a key factor in Honorbilt going bust. E&Y was called in by the group's debenture holders, Midland Bank and Pentland, who rank ahead of other creditors. E&Y had claimed £17m from Shelley.

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