Activist investors launch new attack on Wagamama owner

TRG CEO Andy Hornby has been fighting Oasis since late 2022. Photo: Richard Green

Mr Chambers worked under Mr. Hornby from 2012 at Coral (which became Ladbrokes Coral and later GVC Group), a gaming company led by Mr. Hornby, before joining TRG in 2019 Mr. Chambers joined TRG in 2020.

Mr. Chambers, who is currently Head of TRG Leisure and Concessions, will formally take over as Chief Financial Officer in September. He will replace Kirk Davis, who was the restaurant company's CFO for five years. This came shortly after non-executive director Alex Gersh, who chaired TRG's audit committee, also announced that he was resigning, citing «other business commitments.»

A TRG spokesperson said: «TRG's board conducted a thorough internal and an external search process.”

This is because TRG CEO Mr Hornby, who led Halifax Bank of Scotland when it collapsed in 2008, has been fighting Oasis since late 2022. Oasis highlighted the company's business strategy, low share price, debt levels and high salaries paid to Mr. Hornby and other top managers, as well as strong pressure on the board of directors.

Other activists have since joined the fray, including New York-based funds Irenic Capital and Coltrane Asset. Management, as well as BVI-based TMR Capital, believed to own about 1,000 shares, but met with Mr Hornby and Chairman Ken Hanna.

Over the past five years, TRG's share price has fallen by about 80% as the company has struggled to recover from the pandemic. It has also had to contend with rising prices for everything from energy to ingredients and while its sales have risen in 2022, losses have more than doubled to £86.6m. This year, the company closed a number of inefficient sites.

Mr Hornby, who last year received a £792,000 compensation package as well as 1.4 million shares, narrowly won the executive compensation vote at the company's annual general meeting last month after being the company's largest shareholder , Columbia Threadneedle, supported the board of directors. Nearly half of TRG's shareholders voted against the directors' pay report and more than a third against its pay policy.

Earlier, Oasis called Mr. Hornby's remuneration package «unpleasant» and «disproportionate.»

However, after a meeting with shareholders, TRG's share price continued to fall, falling more than 20 per share. Activists suggested that this was due to the dissatisfaction of the shareholders.

Derek Wago, strategic adviser at TMR Capital, said: “They are clearly under tremendous pressure, the share price is dropping pretty quickly. And I think that's a reflection of the fact that people weren't happy with the resolutions.”

Mr. Wozner added: “It's really worrying. There was a big fight [about the reward]. The register has changed significantly to the AGM and is now publishing the AGM again.»

«The chairman has a duty to look after the interests of the shareholders, and he knows that the shareholders are very unhappy.»

And Oasis , and Mr. Wago asked for a seat on the board of directors. However, TRG did not grant permission to do so.

A TRG spokesperson added: “In recent months, we have received public support from a number of our leading long-term shareholders, got a positive start to the year, developed a clear three-year margin improvement plan and are firmly focused on the result. .

«Prices of all consumer stocks have been under pressure over the past month, and our share price has risen 16% since the start of the year.»