Key facts
- Peter Waddell, founder of Big Motoring World, was ousted as CEO in 2024.
- A High Court judge ruled that private equity investor Freshstream orchestrated Waddell's removal.
- Waddell was also dismissed for gross misconduct, including racist and sexist remarks.
- The judge found Freshstream deliberately allowed Waddell's misconduct to continue to facilitate his ousting.
- Freshstream stated it remains in control of the business following the ruling.
A High Court judge has ruled that private equity firm Freshstream orchestrated a plan to oust Peter Waddell, the founder and former CEO of Big Motoring World, a used-car dealership valued at £300 million. Waddell was forced out in 2024, with the judge finding that Freshstream deliberately allowed Waddell's "racist and sexist remarks" and other misconduct to continue, rather than addressing it through disciplinary processes, to create an opportunity to remove him and gain full control of the business.
Despite the judge's finding that Waddell was "properly dismissed for gross misconduct," the ruling also stated that Freshstream's actions were "pre-conceived and orchestrated" to achieve Waddell's removal without exercising a pre-agreed call option to buy his shares. The judge noted that Waddell's behavior should have led to disciplinary action much earlier, but Freshstream allegedly waited until they were in a position to exclude him.
Waddell, who built the business from scratch after experiencing homelessness, claimed that a downturn in trading prompted his investors to devise a plan to wrest control. He expressed that "justice had been done" and wishes to reacquire the company. Freshstream, however, welcomed the findings of Waddell's dismissal for gross misconduct, including bullying and sexual harassment, and stated they remain in control. They expressed disappointment with the judge's findings regarding their handling of Waddell's conduct, and those accused of inaction are considering their legal options.