Carraighdubh managing director takes legal action over dismissal

LEGAL proceedings have been initiated in the High Court by the managing director of Carraighdubh Holdings Ltd, Michel Hogan, aimed at preventing Reox Holdings plc, formerly Dairygold, from confirming his dismissal or from replacing him.

Mr Hogan of Ennis Road, Limerick, is also seeking an order that Carraigdubh — trading as Alchemy Properties — and Reox restore him immediately to the payroll.

Alchemy is one of the Reox Groups’ divisions.

Mark Connaughton SC for Mr Hogan was given permission by Ms Justice Mary Laffoy to serve notice of the proceedings on the defendants returnable for next Friday.

In an affidavit Mr Hogan said he was head hunted in 2004 by the chief executive of Dairygold Co-op and invited to join as director of property. He was tasked with preparing the launch of Alchemy, one of the three group divisions. The others were 4Homes Superstores, focusing on DIY retail, and Breeo, which took over the food division.

The restructuring of Dairygold took place in May 2006 when it became Reox Holdings plc. At that time Reox became the holding company and its three subsidiary divisions were created with Alchemy taking the property portfolio.

Mr Hogan said he was among a small number of employees selected to participate in the long-term executive incentive scheme (LTI) of Reox Holdings where ordinary shares were issued to him.

The current sale of Breeo Foods to the Kerry Group is currently under appeal with the Competition Authority and if the sale is approved the cash received would have a significant impact on the valuation of Reox. Under this agreement Mr Hogan says he is entitled to a share in the potential LTI pay-out which he believes would benefit him in the order of €1,206,000.

Mr Hogan says that on October 17, 2008 at a board meeting held in Cork he was made redundant without notice.

He said all three Alchemy directors, including himself, attended the meeting. When the review of the budget for 2009 came up, he was told the cuts proposed by him were not enough and more would have to be done. He said it was quickly obvious to him that his two fellow directors had decided what was going to happen before the meeting.

“They spoke as if I was not in the room from what was clearly in my view a prepared script,” he said. When Mr Hogan asked where the managing director would fit in a proposed new structure for the firm, he was told bluntly there would be no role for a managing director.

Mr Hogan said he was totally taken aback and when asked if he would help prepare a presentation to employees he declined as it was clear: “I had been fired..., ” he claimed.