Crew Clothing sues former CEO over bonuses

Crew Clothing is believed to be suing its former chief executive over allegations that he paid himself unapproved bonuses worth around 622,560 pounds. It comes 16 months after David Butler stepped down from the helm position, and was initially reported on by the Telegraph, which said it had seen legal filings in which Crew Clothing made the claims against Butler.

According to the filings, Butler had allegedly told head of HR, Rupert Hay, that the retailer’s owner, Menoshi “Michael” Shina, had agreed to pay him a certain sum in salary increases, bonuses, holiday buy-backs and accommodation allowance rises, the media outlet recounted. However, the retailer claimed that no agreement for such benefits had been made and, as such, it was seeking compensation.

According to Butler’s lawyers, the former executive had received “verbal promises” in regards to the bonuses from Shina, who then acted through third parties, including Hay, that “negotiated” on his behalf. They further alleged that Crew Clothing had initiated a policy for non-furloughed staff during the pandemic that would allow them to receive payment for unclaimed holiday allowance.

Butler and Crew Clothing had previously come head-to-head following his departure from the company in early 2023, with the former launching a wrongful dismissal case against the brand at an employment tribunal.

While this particular case is understood to have been put on hold by the High Court, Butler has launched a counter-claim seeking damages for the “wrongful” dismissal to compensate him for the salary and benefits he would have received if he had been granted 12 months notice.

Butler was ousted from the top position last year in the midst of Crew Clothing’s failed attempt to secure a management buyout. He was joined by other top executives who also departed at the time.