Burger wars
As business partners, they were once the best of friends.
Simon Crowe and Geoff Bainbridge, two former Foster’s executives were solid when they turned a hamburger shop into the $300 million fast food empire Grill’d.
But they have had a massive falling out and are now locked in a legal battle over control and ownership of the business.
Along the way, there have been nasty allegations about lies and shenanigans over the company’s accounts, all of it on public display in the Federal Court of Australia.
How bad is it?
Bainbridge told the court he had called his old friend a “c…” at meeting.
And Crowe delivered it right back. In his testimony, he said Bainbridge was “somebody I cannot trust and who I detest".
"I struggle to be in the same room with him," he told the court.
Bainbridge, who has 25 per cent equity in the business took the legal action.
He originally sought an oppression order from the court under the Corporations Act.
He claimed he was being denied access to the company’s books and records/
He has accused Crowe of breaching his duties as a company director, claiming he has used company staff and resources to fund his purchase of embattled chocolate company Koko Black.
Bainbridge is also seeking the removal of chief financial officer Matt Caulfield and director Matt Reid, a partner at PwC and one of Mr Crowe's closest friends.
Crowe has launched a counter claim. He is seeking an order forcing Mr Bainbridge to sell his stake.
A disagreement over the value of the company is at the heart of the falling out between the two men who had been best friends for 17 years.
The court was told Crowe got a secret valuation of the company which put a figure of $314million on it. He wasn't happy with this number so he changed the 'inputs' and came up with a new figure of $237million. As a result, Mr Bainbridge's stake was $60million. Bainbridge was offered $47 million which he refused.
The case continues at the Federal Court.
by Leon Gettler, November 18th 2016
