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Business News Legal
Former Trinity Street directors deny company under-performed under their leadership
By CMU Editorial | Published on Thursday 26 February 2009
A spokesman for the two former Trinity Street directors who are suing the company’s financial backers have responded to allegations made about the performance of the music-focused e-commerce firm under their leadership.
As previously reported, David Robson and Andy Murray, who acquired Trinity Street back in 2004 and who formed an alliance with music investment firm Ingenious in 2007, were fired from the company and pushed off its board at the end of last year.
They announced last month that they planned to sue the e-commerce firm’s parent company, Trinity Universal Holdings, claiming they were unlawfully removed as directors in what they describe as a “boardroom coup”.
When Ingenious announced they were putting Trinity Street into administration earlier this month, Robson and Murray issued a statement saying their former company had been allowed to collapse after new managers put in place by the investment firm “failed to secure new business and allowed loyal, long-term clients to take their business elsewhere”.
Sources at Ingenious said Robson and Murray’s claims were a “grotesque distortion”, insisting that the plaintiffs had been removed because of concerns about Trinity Street’s financial performance, and that since their departure a more thorough investigation had revealed the company’s situation to be worse than originally thought, hence the decision to close it down.
There are rumours the firm has debts to the tune of £5 million, much of that owing to Ingenious.
But a spokesman for Robson and Murray has hit back, reaffirming the two former directors’ original claims that the company was doing fine prior to their removal, and that they were unlawfully removed from the firm’s board.
Arguing that the £5 million in debts that has been rumoured relates to Ingenious’ investment in the company, for which they receive equity, rather than actual debts, he told CMU: “As late as last month Ingenious, via their lawyers, confirmed [to Robson and Murray] that the company was solvent and also continued to positively represent the company’s stability and future to clients since they took command of the company last year right up until unexpectedly ceasing trading on Friday 13 February”.
On the suggestion that their investors weren’t fully aware of Trinity Street’s financial position until after their departure, Robson and Murray’s spokesman adds: “Since their investment in 2007, `Ingenious have had continuous financial visibility via their board position, management accounts and weekly reviews”.
So, very differing opinions on either side then. Our sources at Ingenious stand by their claims that Trinity Street was “under-performing” before the departure of Robson and Murray, and that that fact was the reason for them being removed. Expect some lively debate if and when the Trinity Two’s lawsuit reaches court.
