Rubicon chiefs set for bonanza

TWO bosses of fashion chains Principles and Warehouse will pocket £38m each if they sell the company they bought for a comparatively modest £1m three years ago.

Chief executive Peter Davies and managing director Hilary Riva are in talks with the ambitious Icelandic retailer Baugur, which is offering £130m for their firm Rubicon.

Baugur has asked to look at the books and hopes to table a formal takeover offer by the end of the year.

That would trigger massive windfalls for finance director Chris Inman and operations director Richard Sims, who would get £17m each.

Chairman Alan Peterson would bank a cheque for about £8m. Senior Rubicon employees will share in a £13m pot.

Principles and Warehouse were sold in 2001 as loss-making units of Arcadia when chief executive Stuart Rose was having a clear-out.

Unable to get finance, Arcadia loaned Davies and Riva the majority of the cash, leaving them to find just £1m for the acquisition.