deputy chair and chief operating office given marching orders
Erinaceous Group has placed deputy chairman Neil Bellis and chief operating officer Lucy Cummings on garden leave, following a board meeting last week.
In a statement the company said it was continuing to negotiate the terms under which Bellis and Cummings would resign. It is believed an announcement could be made next week.
The outcome is the conclusion of a sustained shareholder campaign to oust former chief executive Bellis, led by major shareholder Fursa, who called for an EGM two weeks ago. The American hedge fund has a 19% stake in the company.
The news follows the appointment of Tim Redburn as interim chief executive last week, and the issuing of a warning that full year results would be significantly below expectations.
In September, the company revealed it had breached the terms of its debt covenants.
In recent months Erinaceous has been linked with Towergate, who have described the company as a "natural fit for the business." Erinaceous has already lost 15 of its staff to Towergate, including insurance chiefs Andy Halstead and Nick Crocker and most recently, sales director Wayne Tonge.
In a related development, Erinaceous has appointed Close Brothers as its financial advisor to undertake a review of the company's operations.
The group has also appointed Dominic Lavelle as finance director.
Erinaceous shares have fallen by over 90% this year, and are currently trading at around 20p.
