Judge finds private-equity investors plotted to oust £300m used-car CEO
A High Court judge ruled that Freshstream orchestrated a pre-planned scheme to remove Peter Waddell as chief executive of Big Motoring World, despite his dismissal for gross misconduct.
A High Court judgment determined that Freshstream, the private-equity firm backing Big Motoring World, executed a pre-conceived strategy to remove founder Peter Waddell from his CEO role and gain full ownership without invoking a call-option. Mr Justice Marcus Smith affirmed that Waddell was properly dismissed for gross misconduct, citing repeated racist, sexist and bullying conduct. However, the judge found Freshstream deliberately let the misconduct persist until it could engineer Waddell’s exclusion.
Freshstream had purchased roughly a third of the Kent-based dealership in April 2022, with an option to acquire the remainder. Waddell, who built the business from modest beginnings, now seeks to repurchase the company. Freshstream’s spokesperson welcomed the finding on misconduct but said they are reviewing legal options regarding the other judgments. A subsequent hearing will decide any remedies.
Why it matters
The case highlights how investors may manipulate governance to seize control of companies, raising corporate governance concerns.
In this story