Hutchings ousted as Lupus fails to impress
The colourful and sometimes controversial business career of Greg Hutchings looked to have come to an ignominious end yesterday after he was ousted from the board of the company he controlled.
Rise and fall: Former Tomkins chief Greg Hutchings
He exits Lupus Capital after four largely unsuccessful years.
As executive chairman of the group he had hoped to create a company as big and influential as his former employer, the engineer Tomkins, but failed spectacularly.
Lupus said yesterday Hutchings had resigned and would be replaced by former PartyGaming and Sage chairman Michael Jackson.
Turnaround specialist Keith Taylor, who helped stabilise and sell software firm Torex Retail, has been parachuted in as chief executive.
Hutchings' departure is understood to have been mutually agreed between himself, the rest of the board and the company's bankers. His 12 months service contract will be honoured. Hutchings collected £509,000 last year.
The Venezuelan-born businessman built Tomkins from a £6m, small engineering minnow into a £5bn FTSE 100 industrial conglomerate. But
he left under a cloud after a row over perks relating to his use of corporate jets and allegations his wife and housekeeper were on the payroll.
He was later cleared of any impropriety after an investigation by Ernst & Young.
He bought into Lupus in 2004, taking a 12.5pc stake. The plan when he took the reins was to build up shareholder value by snapping up undervalued businesses.
Shares in Lupus did touch 200p in 2007 but yesterday plunged 7¾p to 15p.
Lupus has been hit badly by the downturn in the building market. Most of its businesses are makers or suppliers to the door and window sector.
It ran into problems with its lenders earlier this year after the strengthening of the dollar pushed up the size of its debt pile. In April the company breached a loan facility and triggered a default on part of its £145m debt mountain.
Lupus said yesterday it had renegotiated its banking agreements but at the cost of £7.5m. It said trading had been in line with management expectations but warned market conditions for the building products business in both the US and Europe remained difficult.
New broom Taylor will conduct a review of the company's operations and will consider all options including disposals. Analysts thought its subsidiary Gall Thompson, which supplies marine and industrial couplings, could go on the auction block.
Hutchings is left with just a 3.6% holding.
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