Murdock chief sues for contract breach

The chief executive of a leading builders' merchants group is suing the company for breach of contract as a result of a recent dispute with his employer, writes Barry O'Halloran

Patrick Burns is taking the Murdock Group, chaired by former Gresham director, Seán Henneberry, to the Belfast High Court in a bid to be reinstated to his position, which is worth an estimated €1 million a year in pay and bonuses.

The court will hear a motion relating to the case on June 7th next, but it could take some time before a full hearing takes place.

The Newry-based Murdock Group is a leading builders' merchants business with branches in the North and the Republic. The latest figures show that it had sales approaching €90 million in 2004.

The Murdock family owns the business, and the main figure behind its development over the last two decades is Ciarán Murdock, who also has considerable property interests.

Mr Burns took over the job for an agreed five-year term, which was due to end in 2008. He had a specific brief - to expand the company - and his package of £3.5 million (€5.1 million) over the contracted period was linked to performance targets.

However, last March he was placed on leave. It is understood the company told him there had been a change in policy.

As a result of discussions that arose out this move, the company said that he had effectively resigned, a claim that Mr Burns is disputing.

He is suing Murdock Group for breach of his employment contract and is seeking reinstatement to the position he held. He has worked for the business since 1998 and was promoted to the chief executive role in 2003.

Mr Henneberry would not comment on the case yesterday when contacted. He said he could not discuss the matter as it was before the courts.

However, it is understood the Murdock Group intends defending the action, and could contest Mr Burns's case that he met targets set out in the agreement he made with the company.

The Murdock Group is one of the better-known chains in its business in Northern Ireland and has a store in Balbriggan Co Dublin. It also has plans to open in Letterkenny, Co Donegal and owned a store in Galway, which it subsequently sold.

Along with Mr Murdock and Mr Henneberry, its other directors are named on Northern Ireland Companies Office filings as Malachy Murdock, Kevin Murdock, Ann Morgan and Roddy Taylor.

In 2004, the last year for which accounts are available, it had a turnover of €87.5 million.

Operating profits were €2.8 million and pretax earnings were €2.2 million.

One of the group's subsidiaries is Stoney Properties, which is involved in Bridgewater Park. This will house a major retail and business park development at Banbridge on the Belfast-Dublin motorway. It will include the Outlet shopping complex, which will be the biggest retail development in Northern Ireland.

Stoney Properties sold the site on which this is being built to a partnership of GML Estates, Orana Group and Land Securities for a reported £30 million. Stoney Properties will develop a business park alongside the retail site and retains a share in the overall development.

Mr Murdock has a number of business interests south of the Border. Along with Murdock Group subsidiaries in the Republic, he is listed as a director of a number of builders' merchants distributors, an investment company, Mack Investments, and two firms described as management consultancies, Clyduff and Blackthorn File Management.