The Bookseller.com

2nd December 2008

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CSS chairman rounds on agents

05.11.07

David Buchler, chairman of PFD's parent CSS Stellar, has accused the rebel agents of "corporate robbery" after offering £4m for a business they had sold for £12m.

Buchler told The Times: "When I arrived at the company in August there had already been two offers for the business in the region of £8m. The agents having sold their business to CSS Stellar for £12m were offering in the region of £4m and taking whatever persuasive measures they could, including mass resignations, to ensure that CSS had no alternative other than to accept their offer. To me it appeared almost akin to corporate robbery and therefore I made it clear that no sale would take place." Buchler has now launched an investigation into apparent inconsistencies in the payment of commissions and bonuses totalling £2m in recent months.

The agents claim that the decision to pay out bonuses was taken from very proper business practice. The agents claim CSS was badly managed and failed to invest in its new acquisition. Shares in CSS fell to just 40p by July (by the end of last week they were down to 20p). In the summer the agents proposed buying back the company for £4m plus an interest in future profits.

Times

PFD CSS Stellar David Buchler