Boss of £300m used-car firm was ousted after ‘orchestrated plan’ by investors, judge rules

Peter Waddell, the founder and former chief executive of the Kent-based used-car dealership Big Motoring World, was found to have been unfairly dismissed by a High Court judge, who ruled that his ousting was part of an “orchestrated plan” by private equity investors seeking to gain control of his £300m business. The decision, delivered by Mr Justice Marcus Smith, determined that while Waddell was correctly terminated for gross misconduct, the method by which his removal was executed was unjustified and detrimental to the company. Waddell, 60, was forced out of his role in 2024 amid accusations of racist and sexist remarks, including allegedly telling a female cleaner “I bet you'd like to suck my d***” and referring to people of Indian descent as “Hyundais.” Despite these allegations, the judge acknowledged that Waddell had a history of such behavior that was known to Freshstream, the private equity firm that had invested in his business. However, the judge found that Freshstream had not taken appropriate steps to address his conduct prior to his dismissal, allowing the situation to escalate to the point where they could remove him from leadership without exercising a contractual right to purchase his shares. Freshstream, which had acquired approximately one-third of Big Motoring World in April 2022, sought to take full control of the business without paying the additional £72m required under a call option clause. According to the judge, the firm had planned ahead to achieve permanent control of the company and Waddell’s removal from the business without fulfilling the financial terms of the agreement. This strategy, the judge noted, involved allowing Waddell’s behavior to go unchecked until Freshstream was positioned to act. Waddell, who has a history of homelessness and grew up in care, built his business from the ground up, eventually managing a company with 525 employees and generating £371m in revenue and £6.6m in profit. His personal wealth reportedly reached £500m, and he owned a London mansion valued at £23.5m. He had hoped to reduce his workload by selling a portion of his company to Freshstream, allowing him more time with his family. But instead, he found himself embroiled in a bitter legal battle that culminated in his forced exit. In response to the ruling, a spokesperson for Freshstream stated that they welcomed the finding that Waddell had been rightfully dismissed for gross misconduct, including bullying and harassment. They also expressed satisfaction that several of Waddell’s claims regarding their exercise of shareholder rights had been rejected. However, they criticized the judge’s findings on the issue of whether Freshstream had adequately addressed Waddell’s conduct before his dismissal, calling it “disappointing.” The judge emphasized that Waddell’s early misconduct, while not gross, could have been managed through warnings and discipline rather than immediate dismissal. He argued that if Waddell had been given clear guidance, he might have modified his behavior and retained his position. The judge also highlighted the damage caused by the conflict between Waddell’s team and Freshstream’s team, describing it as “more-or-less open warfare” that led to significant financial losses and operational disruption. The case is set to continue, with remedies yet to be determined. Waddell has indicated that he intends to reacquire the company, believing that justice has been served. Meanwhile, Freshstream remains in control of the business, with plans to pursue further legal avenues to protect its interests. The outcome of the ongoing proceedings will determine the final resolution of this complex dispute.