David Ross, one of the co-founders of the Carphone Warehouse, has quit the company after admitting that he had used a large slice of his personal holding in the company to guarantee personal loans.
Ross’s shock resignation as a director of the telecoms retailer was announced this morning. Carphone said that Ross had guaranteed 136.4m Carphone shares – worth £120m at today’s share price – against personal loans without informing the company.
He owns 177m shares in the firm, a stake of almost 20%, having set it up with schoolfriend Charles Dunstone. London mayor Boris Johnson appointed Ross last month to head a new team of legacy advisers for the 2012 Olympics.
Under stockmarket rules, if a director uses their shares in this way then the company must issue an official statement. According to Carphone, Ross made the guarantees at various points between 2006 and 2008, but only told the company yesterday.
“David Ross has also notified the company that none of these loans is currently in default and that he has no current intention to sell any of his shares in the company,” said Carphone.