Crew Clothing is involved in a legal dispute with its former CEO, David Butler.
- The retailer accuses Butler of falsely claiming entitlement to £622,560 in extra benefits.
- Allegations include unwarranted bonuses, holiday pay, and accommodation allowances.
- Butler has denied the claims and has filed a counter-claim for wrongful dismissal.
- The situation follows Butler’s abrupt departure and a failed management buyout attempt.
Crew Clothing has initiated legal proceedings against its former CEO, David Butler, accusing him of falsely claiming substantial compensation without formal agreement. The accusations involve Butler allegedly informing the Head of HR, Rupert Hay, that Menoshi ‘Michael’ Shina, the owner, had approved various bonuses and salary increments. The total disputed amount stands at £622,560, covering aspects like salary increases, bonuses, holiday buy-backs, and accommodation allowance rises. The company asserts there was no such agreement and seeks financial redress.
Butler has robustly refuted these allegations, claiming these benefits were promised verbally by Shina, albeit indirectly communicated and negotiated through intermediaries like Hay. This contention forms the core of his defence, as presented by his legal representatives. They are also challenging the High Court, maintaining that Shina opted not to discuss Butler’s employment terms personally but through other parties.
Concurrently, Butler has lodged a counter-claim seeking damages for what he describes as wrongful dismissal in April of the previous year. His argument rests on compensation for expected salary and benefits, contending that his abrupt departure negated his entitlement to a 12-month notice period. This counteraction is withstanding amidst paused proceedings at the employment tribunal, stemming from the High Court’s intervention.
Significantly, Butler’s exit coincided with a failed management buyout, resulting in the departure of several senior figures and leaving Crew Clothing devoid of a complete leadership team for months. A particular incident highlighted was a message sent by Butler to Shina after a wine tasting event. Butler, under the influence of alcohol, indicated potential resignation if his proposals were unacceptable, a message the defence argues should not have been immediately taken at face value.
As the legal proceedings continue, both parties remain steadfast in their positions. Crew Clothing seeks resolution to reclaim payments it believes were unjustly appropriated, while Butler’s defence hinges on the legitimacy of verbal assurances and procedural fairness in employment practices.
The legal confrontation between Crew Clothing and David Butler centres on contested financial agreements, with courtroom deliberations ongoing.
