// Lush complains to Financial Conduct Authority about a former director over control of a large stake in the business
// The retailer has filed an official complaint about Silverwood Brands
Lush has complained to the City watchdog about a former director following a dispute over control of a large stake in the retailer.
The company has filed an official complaint about Silverwood Brands with the Financial Conduct Authority and the Aquis stock exchange.
Silverwood is controlled former Lush director Andrew Gerrie, who is trying to get the transfer of a £220m shareholding in the retailer approved.
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Gerrie, who joined Lush shortly after the company was founded, was handed shares in the business under strict conditions governing their forward sales.
Under the terms, the Lush board has the right of first refusal if Gerrie wants to sell any of his holding.
Shares must also be paid for in cash at a valuation that is independently verified.
Gerrie is looking to transfer a 20% stake in Lush to Silverwood Brands, an investment company that is listed on London’s Aquis stock exchange.
Lush has complained that Gerrie has misled the stock market about the viability of the transfers, The Telegraph reported.
Gerrie had previously tried to sell his shareholding shortly after leaving Lush in 2014 but faced legal challenges at the time.
Lush has also claimed it was misleading of Silverwood to say last month that the retailer had rejected the transfer request “without reason”.
“Silverwood Brands plc rejects Lush’s claims which are totally unfounded. All statements made by Silverwood Brands plc in its RNS statements have been correct,” Silverwood said.
Gerrie has appointed lawyers to advise Silverwood on the legality of the transfer.
