Crew Clothing is engaged in a court case with its former CEO, David Butler, over disputed compensation claims.
- Butler is accused of claiming unauthorised salary benefits amounting to over £600,000.
- Crew Clothing denies any agreement on these benefits and seeks compensation through legal means.
- Butler refutes the allegations and has countersued for wrongful dismissal.
- The case has disrupted Crew Clothing’s operations, as several senior leaders departed following Butler’s exit.
The British casual wear retailer, Crew Clothing, has initiated legal proceedings against its former CEO, David Butler, accusing him of claiming unauthorised salary increases and bonuses worth £622,560. Crew Clothing asserts that Butler informed Rupert Hay, their head of HR, that the business’s owner, Menoshi ‘Michael’ Shina, had agreed to these remunerations without any formal accord. The retailer firmly maintains that no such agreements were ever in place and is consequently seeking compensation from Butler.
In response, Butler denies these allegations and has countersued Crew Clothing for wrongful dismissal. His legal team claims that verbal agreements were made, affirming that Shina chose not to directly engage with Butler regarding his employment terms. Instead, these discussions were allegedly conducted through intermediaries such as Rupert Hay. Butler’s defence positions this indirect approach as evidence that agreements had been negotiated, even if not formally documented.
The legal dispute, currently being addressed in the High Court, has interrupted an employment tribunal case which Butler had initiated against Crew Clothing following his departure. His lawyers have presented that Crew Clothing instituted a policy amid the pandemic, allowing non-furloughed staff, including Butler, to receive payment for unclaimed holiday allowances. They argue this policy supports Butler’s entitlement claims, pointing towards a broader acceptance of such compensations by the company.
Butler’s countersuit seeks damages for wrongful dismissal to recover what he describes as lost salary and benefits, asserting that his abrupt departure from the company was unjustified. This sudden exit was precipitated by a failed management buyout attempt, after which multiple senior executives also left the organisation, leaving Crew Clothing temporarily without a complete leadership team. These events have intensified the atmosphere around the ongoing legal proceedings.
In an incident cited by Butler’s lawyers, a message from Butler to Shina allegedly followed an evening where Butler had ‘consumed a lot of alcohol’, suggesting impulsivity in his communication. The legal team argues that Crew Clothing acted prematurely by not allowing Butler time to clarify his intentions, claiming that he had subsequently retracted his resignation suggestion made in that context.
The ongoing legal battle between Crew Clothing and its former CEO highlights significant disputes over employment agreements and compensation claims.
