£500m ad tycoon and a visit to a Mayfair brothel
Sorrell hit by a blizzard of claims – including that he paid £300 for prostitute on expenses
ONE of Britain’s most powerful men faced a barrage of humiliating allegations yesterday.
Multi-millionaire Sir Martin Sorrell put a £300 visit to a Mayfair brothel on expenses, it was claimed.
He was also accused of bullying staff and ‘blurring’ the line between corporate and personal expenditure for himself and his wife.
The bombshell claims, which Sir Martin says are untrue, came after weeks of silence from him over his shock departure in April from WPP, the global advertising empire he founded in 1985.
Sir Martin, 73, transformed WPP from a small wire baskets company into the world’s largest advertising agency – becoming the UK’s highest-paid businessman along the way and one of the most influential men in Britain.
A passionate campaigner for Remain in the EU referendum, he is a regular commentator on business affairs, regularly appearing on the BBC and in national newspapers.
Sir Martin’s abrupt and mysterious resignation from his own firm, following an internal inquiry into alleged ‘personal misconduct’ and the possible misuse of company funds, prompted intense speculation in the City.
His downfall – and the unprecedented secrecy around it – has puzzled and angered blue-chip investors for weeks.
Yesterday the Financial Times newspaper claimed Sir Martin, worth £500million, had been spotted going into a Mayfair brothel at 50a Shepherd Market last June.
The prostitutes advertising their services at the £1.3million one-bedroom address are described as ‘young models’ in their twenties.
When the Mail visited the dimly-lit flat yesterday, bondage equipment and racy underwear hung from the bedroom door and red neon lights dangled over the bed.
Sir Martin strenuously denies the prostitute allegations, which first appeared in the Wall Street Journal on Saturday.
Yesterday the FT claimed the investigation against him was triggered by a combination of factors including alleged verbal abuse of his staff, his sacking of a popular chauffeur last autumn and being spotted entering the brothel by a member of his staff who later reported it.
The newspaper claimed it had spoken to 25 people who had worked closely with the former WPP boss, and one had accused him of being ‘brutal and inhuman’ to his assistants and another claimed being his assistant was ‘a pretty thankless task’.
Sir Martin strongly denies that he mistreated, abused or bullied his staff.
The FT claimed it was ‘common’ for Sir Martin to request cash for day-to-day expenses, despite being able to put restaurant, drinks, transport, laundry and gifts expenses on a company credit card.
Friends of the businessman pointed out he inevitably had significant expenses running a company with 200,000 staff operating in 112 countries – and denies misusing funds.
The FT’s investigation sets the scene for an explosive annual general meeting of the company which takes place tomorrow. WPP called in investigators following the whistleblower’s claims.
A report subsequently concluded the money was ‘immaterial’ and it was a personal matter for Sir Martin, it was said. He apparently decided to quit WPP, despite denying the accusation against him, because of a breakdown in relations with the board.
He is now setting up a rival company. For two months, WPP has steadfastly refused to explain why Sir Martin stepped down, to the frustration of some large investors who have called for greater transparency.
Yesterday friends of the mogul were blaming the astonishing situation on an ex-employee ‘with a grudge slinging mud at him’ and said he was ‘pretty cheesed off about it’.
One said: ‘It has turned out to be a very murky, unpleasant business. He has no complaint about there being an investigation if there needed to be one, but he felt it was badly conducted. He doesn’t want to sit down at the same table with those people on the board again.’
Another friend told The Times: ‘He denies the allegation that he saw a prostitute. He understands that the allegation was made by a disgruntled employee. If you run a business with 200,000 employees for 30 years, some will fall out with you.’
The mogul’s spokesman said last night there was nothing to add to a previous statement which said: ‘Sir Martin signed a non-disclosure agreement when he stepped down which precludes him from discussing any of the circumstances surrounding his departure.
‘He has rigidly adhered to this obligation and will continue to do so. As regards the allegations which have appeared in The Wall Street Journal, Sir Martin strenuously denies them. He will be making no further comment at this time.’