Following the completion of an independent forensic review, Cattles has sacked five key executives.
On 3 March 2009, three senior executives of its main trading subsidiary, Welcome Financial Services, were suspended. A week later, James Corr, finance director of Cattles plc, Ian Cummine, its COO and chairman of Welcome, and another senior executive of Welcome, were all suspended.
Following the independent review, the employment of each of these six suspended senior executives has been terminated with immediate effect. In addition, Mark Collins, currently treasury and risk director of Cattles plc, is leaving with immediate effect.
Cattles said that none of the departing executives will receive any compensation for loss of office.
In addition, a number of other employees, at both group and subsidiary level, will face appropriate disciplinary action.
Margaret Young, currently a non-executive director and chairman of the Audit Committee, has been appointed executive chairman of Cattles plc. She will be supportthe AGM, either as chairman or as a director of Cattles plc. He has now decided to step down as chairman and as a director of Cattles with immediate effect.
David Postings has also decided to step aside as chief executive and will leave the Group immediately. However, to assist with an orderly handover, he has agreed to be available to the Company on a consultancy basis for a period of six weeks.
The Board of Welcome will also be restructured, ed in that role by Robert East, who will continue to lead Cattlesrsquo discussions with its banks, bondholders and noteholders, and has agreed to join the Cattles Board as chief restructuring officer immediately after the forthcoming AGM on 29 July 2009.
Norman Broadhurst would not seek re-election at with the appointment of Laura Barlow as executive chairman. She will assume this role in an interim capacity and will remain a partner and a managing director of AlixPartners. Paul Mackin becomes managing director of Welcome. These two appointments are subject to the necessary FSA approvals.