Crew Clothing has embarked on a legal battle against its former CEO, David Butler, over a substantial bonus claim.
- The company alleges that Butler misrepresented agreements regarding salary and bonuses, totalling £622,560.
- Butler contests these claims, asserting verbal agreements were made with the owner through intermediaries.
- Both parties are embroiled in legal proceedings, with Crew Clothing seeking compensation and Butler countering for wrongful dismissal.
- The issue has arisen amidst organizational changes following Butler’s departure and a failed management buyout.
The British casual wear company, Crew Clothing, has initiated a legal case against its former CEO, David Butler, demanding reimbursement for what it deems an unfounded claim of bonuses and benefits. The dispute, amounting to a significant £622,560, came to light over a year after Butler’s exit from the firm. The company accuses Butler of inaccurately stating that the owner, Menoshi ‘Michael’ Shina, approved increases in his salary, bonuses, holiday buy-backs, and accommodation allowance without agreement.
Butler, however, refutes these allegations vehemently. Through his legal team, he argues that verbal assurances were indeed given by Shina regarding his employment terms. According to Butler’s lawyers, Shina chose to communicate through intermediaries, including Rupert Hay, Crew Clothing’s head of HR, during these discussions.
This unfolding legal scenario has not only led to a High Court case but has also put a temporary halt to Butler’s separate wrongful dismissal claim at the employment tribunal, which was poised to be heard soon. Butler’s legal defence hinges on the assertion that the alleged verbal agreements were legitimate and that Crew Clothing acted precipitously in dismissing him.
Adding complexity to the case, Butler’s counterclaim seeks damages for what he regards as wrongful termination. He contends that he was dismissed abruptly last April without the standard 12-month notice, which resulted from a managerial misjudgement following an unsuccessful attempt by the leadership team to orchestrate a management buyout.
Following Butler’s swift exit, Crew Clothing faced additional upheaval with several senior leaders leaving, precipitating a leadership void that persisted for some time. Of particular note is a message Butler sent to Shina after a social event, purportedly indicating his willingness to resign unless his terms were agreed, a message he claims was sent under the influence of alcohol and subsequently retracted.
The case highlights significant tensions within Crew Clothing’s leadership dynamics, underscoring the complexities of executive agreements.
