Dragon Bannatyne’s £10m court battle
FORMER Dragons’ Den star Duncan Bannatyne is being sued for £10million by the man who ran his business while he developed his television career.
Nigel Armstrong was chief executive officer at the tycoon’s firm Bannatyne Fitness and turned it into a £90million turnover company.
But their 17-year collaboration turned sour last year amid allegations of fraud and Mr Armstrong’s arrest.
Now he has been told by police that he will face no further action and is on course for a High Court showdown with Mr Bannatyne, 66, claiming he was unfairly dismissed without the £10million pay-off he was due.
The former £350,000-a-year executive says he was promised the sum by Mr Bannatyne in share options and lost earnings as a reward for his hard work over the years.
The two sides met last week before a district judge for an interim hearing. Mr Bannatyne’s second wife Joanne McCue, 48, mother of two of his six children, watched proceedings from the back of the court.
Her ex-husband once complained that divorcing her cost him his place in the Sunday Times Rich List as his personal fortune dwindled from £430million to £85million in two years.
In his autobiography, Mr Bannatyne – who did not attend the hearing – referred to Mr Armstrong as ‘the most important person working for the company’ and ‘a very able young guy’. He added: ‘The company went from strength to strength under Nigel’s leadership’.
Mr Armstrong said: ‘I am pleased to be exonerated. My focus always has been the resolution of issues relating to my employment and shareholding in Bannatyne Fitness Limited.’
A Bannatyne company spokesman said: ‘There are ongoing legal issues that we cannot discuss.’