Rebels plot coup at Marchpole

AILING fashion group Marchpole Holdings is facing a coup attempt by rebel shareholders, including founder and former chief executive Michael Morris.

Morris, who holds 26% of the company, and Harold Tillman with 11%, have called for an extraordinary general meeting to replace the board.

In a letter sent to directors on Friday, they demanded an EGM, claiming to have 'lost all confidence' in the firm's bosses. 'There seems to be no purpose in the board remaining in their positions,' they added.

The attempted coup is the climax of a two-year struggle for the company, which owns the licence for Yves St Laurent clothes in the UK.

In February 2000, Morris was ousted as chief executive and became embroiled in a legal dispute over allegedly sky-high expenses. The Department of Trade and Industry is reportedly investigating the affair. Morris denies allegations of overspending and argues that the board has undermined the value of the business.

Tillman is also the major shareholder in BMB, a menswear business he bought from William Baird two years ago.

The two investors aim to install four new directors at the company. The chairmanship, at present held by Ian Gray, would be handed to Christopher Philips, chairman of property valuer Collins Erdman. Other replacement directors would include Bill Walker, founder of the Ben Sherman fashion group, and Greg Tufnell, former managing director of retailer Burton. The fourth new board member would be accountant David Mattey.

The crisis at Marchpole came to a head last week when its bank called for a £4.6m loan to be repaid. The company recently agreed to sell its central London offices for £4.7m.

Tillman and Morris back the sale and would use the proceeds immediately to repay debt.