Cadogan Holidays has spoken of its regret at the “betrayal of trust” by former managing director Gary David following the conclusion of a civil case against him.
David agreed to pay the operator a “substantial” sum in an out-of-court settlement that came after the start of proceedings at the High Court in London this week.
The Southampton-based operator said it was unable to comment on the size of the settlement, however, Travel Weekly understands the case involved a seven-figure sum.
His successor Tom Allen, who was appointed in April 2006, described the payout as “substantial”.
Details of the case have not been revealed as both sides are bound by confidentiality agreements. The police were called in to investigate financial irregularities but no criminal case is pending.
David was suspended in January last year as the operator investigated his management of the company. He was sacked in April 2006 after the probe by group finance director of parent company, the Bland Group, Chris Attwood.
Cadogan chairman James Gaggero described the past 12 months, during which time the civil case was being prepared, as testing.
“Betrayal of one’s trust is always difficult to bear,” he said. “However, I’m glad this regrettable chapter has been brought to a conclusion.”
Following David’s suspension, his son Dahl was removed from his reservations consultant role at Cadogan and his former marketing manager Denise Connelly, who was due to rejoin the operator after receiving a substantial redundancy payment in July 2005, had her job offer withdrawn.
David was a high-profile travel industry character who played a leading role in the Truly Independent Professional Travel Organisation and the Association of Independent Tour Operators. He was chairman of the Association of Tour Operators when he was suspended from Cadogan.