Pither quits to avoid conflict of interests

Oct 22 2008 by Peter McCusker, The Journal

THE chairman and founder of one of the region’s fastest growing firms has stepped down from its board over concerns of a “potential conflict of interest” with other business ventures.

Jon Pither founded Chester-le-Street based building services and supplies firm Northern Bear with its current chief executive Graham Forrest and they floated it on AIM in December 2006. It now has a total market value of £16m and encompasses 12 North East building services firms.

Pither, who lives in Surrey, is also chairman of Southern Bear and earlier this year it bought Newcastle-based central heating business Fenhams, which is a competitor of one Northern Bear’s companies.

At the time Southern Bear said it was an acquisitive company and that other purchases would follow. This prompted concern in Northern Bear and Mr Pither yesterday announced he was standing down as chairman and a director.

A statement released by Northern Bear yesterday said: “Mr Pither … is stepping down in order to avoid any potential conflict of interest between his other business commitments and the activities of the group.”

One Stock Market analyst said Southern Bear’s purchase of a Northern Bear competitor created a conflict of interest which appeared to have now been resolved by Mr Pither’s resignation.