Dimas Gimeno to leave El Corte Ingles after agreeing €8.5m deal
After turbulent months at Spanish department store group El Corte Ingles, former chairman Dimas Gimeno has agreed a deal with the company to resign from the board.
The agreement includes an 8.5 million euro payment and Gimeno’s voluntary departure, reported Spanish newspaper Expansión. Effectively, it terminates their business relationship.
The deal was reached hours before a special board meeting on Sunday, where a vote was expected to take place to decide on the removal of Gimeno.
This is the latest development in a long list of events at the Spanish retailer. In May, Dimas Gimeno narrowly dodged a motion of censorship brought forward by sisters Marta and Cristina Alvarez, the daughters of former chairman Isidoro Alvarez.
But in June, Dimas Gimeno was sacked as chairman and replaced with Jesus Nuño de la Rosa, who has held the position since then. Before his dismissal, Gimeno said he would challenge the board of directors if it resolved to dismiss him.
Gimeno will have to withdraw his threat of legal action under the agreement with El Corte Ingles, but other issues which also generate friction have been left untouched. They include the segregation of his IASA shares, which reach 31% of the total.
At the moment, the agreement seems to put an end to a longstanding dispute, limiting Dimas Gimeno’s relationship with the department store chain.
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