Peter Waddell, a 60-year-old entrepreneur who built Big Motoring World into a £300m enterprise, was removed as chief executive in 2024 following a high court judgment that examined the circumstances surrounding his departure.
Mr Justice Marcus Smith determined that Waddell was properly dismissed for gross misconduct based on allegations of racist and sexist remarks. However, the judge also concluded that the company’s private equity backer, Freshstream, deliberately allowed Waddell’s problematic behavior to persist unchecked as part of a calculated strategy to eventually remove him from the business without having to compensate him for his remaining shares through a pre-agreed call option arrangement.
Smith stated that Freshstream had developed a “pre-conceived and orchestrated plan” aimed at achieving permanent control of the company and Waddell’s removal while circumventing the contractual obligations that would have otherwise required payment for his stake. The judge noted that matters warranting disciplinary action should have been addressed much earlier, potentially without resulting in dismissal.
Waddell built the Kent-based dealership from modest beginnings, overcoming childhood care experience and homelessness to create a business employing 525 people with reported revenues of £371m in 2021. Freshstream acquired approximately one-third of the company in April 2022, gaining the option to eventually acquire Waddell’s remaining shares. Waddell contended that his communication style was known to investors before they acquired their stake and that business downturns prompted the removal strategy.
Freshstream acknowledged the judge’s findings regarding Waddell’s dismissal for bullying and harassment but expressed disagreement with conclusions about their handling of his conduct. The judgment determined that Waddell’s removal caused unfair prejudice to the investment company holding his shares. A separate hearing will determine remedies in the case.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI