THEO PAPHITIS has quit the board of La Senza, the lingerie chain, after a bust-up with its private-equity group owner, Lion Capital.
It is believed the star of BBC's Dragons' Den resigned from the board on June 1 after differences of opinion over how the business should be run. Paphitis had only returned to the helm in February after a boardroom clear-out that saw Rose Foster, its chief executive, leave.
At the time La Senza said Paphitis's "significant experience" in the retail sector would help to ensure the company was well placed to address the next phase of its growth in a difficult economic climate.
Two months later it emerged that Paphitis had entered talks with Lion to buy a majority stake. He sold La Senza to the private-equity group for £100m in 2006.
Now it is understood those talks have broken down.
Advertisement
City sources suggested this weekend that the entrepreneur will talk to hedge funds that control the company's debt about buying the loans.
The chain has slumped in value in the past three years and it is unclear whether there is any equity left.
The company is expected to require a radical restructuring, so buying the debt could allow Paphitis to wrest control through the back door.