Chestertons pays out to sacked chief

STRUGGLING estate agent Chestertons has been forced to pay £422,000 to its sacked former chief executive after he sued for wrongful dismissal. The bumper payout to Michael Holmes is an embarrassing blow to Chestertons, which last week disclosed a net loss for the year of £6.1 million.

The embattled property firm, which has been headed since January by Lorraine Baldry, is in takeover talks with several interested bidders, including a team led by the management. The company's annual report, published last week, reveals a £400,000 settlement with Holmes, with £22,000 more paid 'in kind'. Holmes also picked up £63,000 in 'remuneration payments'.

Chestertons sacked Holmes last September after admitting profits had fallen by more than 50% as the London property market came off the boil. Baldry said: 'It's history . . . he got the money and that's that.'

Chestertons hopes to reach a decision on a buyer within the next few weeks, she added. 'But if we don't sell the group as a whole, we will look to sell parts of the business,' she said.