Lush has settled a legal dispute with its former chief executive Andrew Gerrie over a blocked transfer of shares.
The bath bomb specialist found itself in a row last year with Gerrie’s investment firm Silverwood Brands after the business sought to acquire a 19.8% stake – worth £216.8m – in Lush from the former boss and his wife, Alison Hawksley.
The retailer blocked the transfer of shares to Silverwood as it said they did not match those previously offered to the remaining shareholders.
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Lush claimed “the separation of legal and beneficial interests in the shares is not permissible” and that the price paid for the shares was required to be made in cash, whereas Silverwood’s payment was allegedly not.
The retailer told The Times it had settled its legal battle as “Gerrie and Silverwood Brands have now accepted Lush’s position that the transaction was not in compliance with the company’s articles and the sale is not now proceeding”.
VSA Capital Group, the broker that held the shares during the dispute, said it had returned them to Gerrie and had agreed to co-operate with his and Hawksley’s objective of achieving an “unwind transaction”.
As part of the settlement, Gerrie and Hawksley will pay Silverwood £300,000 in cash for legal costs incurred.
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