A director has been axed from the board of Blacks Leisure following an investigation into accounting irregularities at its Sandcity subsidiary.
Darren Spurling was suspended earlier this year after it emerged that earnings at Sandcity – which sells O'Neill branded outdoor wear - were overstated by about £1m.
Spurling leaves the company without a payoff. It is understood that the police are not involved, the Guardian reported.
'There's no suggestion of fraud and no cash left the business,' a spokesman said.
Blacks also cut its profits in January, after a review of the ailing business by newly appointed chief executive Neil Gillis, after the accounting irregularities emerged.
The group also announced that its FD and chief executive Keith Fleming has resigned to pursue opportunities with another private equity group.
Fleming will be replaced by group finance director Marc Lombardo, who joins Blacks from Greene King Plc, where he is currently Group Financial Planning Director.
Lombardo has previously held positions with Scottish & Newcastle and the Daily Mail.
Blacks Leisure chairman David Bernstein said: 'Marc Lombardo is an experienced and talented finance executive and I am delighted to welcome him to the Blacks senior team. I am confident that he will work well with Neil Gillis to implement the turnaround plan.
'Keith has played an important role in the development of Blacks Leisure both as Finance Director and as Interim Chief Executive where he played a key role in steadying the business at a time of significant change. He leaves with our best wishes for his new venture.'
Further reading:
Blacks sweats over BDO findings
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