11:02 am, March 10, 2026
Big Motoring World investors drew up plans to replace CEO Peter Waddell with Laurence Vaughan months before the leadership change eventually took place.
That is according to evidence heard in the High Court yesterday (Mar 9), where more details of Waddell’s acrimonious departure were made public.
The motor trade tycoon is suing Bluebell Cars – the ultimate holding company of Big Motoring World – for unfair dismissal, harassment and disability discrimination.
The 59-year-old has told the hearing that he was the victim of a ‘coup’ by investment group Freshstream, who he claims forced him out of the used car supermarket group.
Car Dealer was in court on Friday (Mar 6) when it was revealed that Freshstream ‘secretly’ paid Vaughan a £145,000 ‘consultancy fee’ before he eventually replaced Waddell as CEO.
Yesterday, talk turned to how Freshstream removed Waddell from his post, following a slew of allegations around his conduct.
Throughout the day, Waddell’s barrister, Alan Gourgey KC, cross-examined Freshstream partner Reza Fardad about a series of internal documents from early 2024.
The emails and notes suggested that Freshstream had begun preparing a ‘step-in’ plan which would see Vaughan take over as CEO if control of the company was taken from Waddell.
Asked about the proposal during cross-examination, Fardad accepted that the plan involved a leadership change.
‘The plan was for Laurence to step to CEO and Pete to step up to chairman,’ he told the court.
Pressed further by Gourgey on whether that meant Waddell would cease being CEO, Fardad replied: ‘That would be ideal. Yes, that’s correct.’
Waddell was ultimately removed as CEO in April 2024 and replaced by Vaughan, who was preferred by Freshstream to industry legend Daksh Gupta.
Internal documents from the months prior to the change, show that Freshstream had established plans for Vaughan to move up to CEO, while former Big Motoring World executive Andy Holness would return from ‘day one’, following a potential step-in.
Another document referenced communications to staff which would be issued once Waddell had been removed from his role.
Summing up Freshstream’s position, Justice Marcus Smith said: ‘The plan was to get Mr Vaughan in as CEO.
‘‘You wanted Mr Waddell out in the sense of not having him interfere in the ongoing business of the Big Group.’
In response, Fardad said: ‘Yes. For Laurence as CEO to run the business.’
‘Bad actor’
Freshstream initially invested in Big Motoring World in 2022, when it took on a minority 35% stake in the company for £72m.
The agreement included a £72m call option to later become a majority stakeholder, but the investment group decided against invoking it.
The court has also heard that the deal included ‘step-in’ rights, which allowed Freshstream to remove Waddell if financial targets were not met, or if he was judged to be a ‘bad actor’.
Internal notes shared in the lead up to the 59-year-old’s departure suggest that Freshstream were considering implementing the step-in rights on this basis.
One note read: ‘Bad actor – very limited set of criteria where we can terminate him,’ before adding: ‘How can we force him?’
When the memo was put to Fardad, he argued that the discussions were about trying to establish their legal position rather than showing a plan to oust Waddell.
‘When we analyse anything… we look at all the different potential in the future,’ he said. ‘It doesn’t necessarily mean that’s the path we’re going.’
The trial so far…
- Peter Waddell says he was victim of Big Motoring World ‘coup’ as High Court trial gets underway
- Waddell ran ‘fiefdom’ and complained about ‘too many muslims’, court hears
- Peter Waddell accused of using disabilities as a ‘fig leaf’ as High Court trial continues
- ‘I wish I’d never sold to them’: Waddell tells court of regret in selling Big Motoring World
- Peter Waddell nicknamed employee ‘Ching the P***’ because ‘his father ran a corner shop’, court hears
- Daksh Gupta held talks over becoming Big Motoring World CEO after Marshall departure
- Weekly Briefing: High Court hears there was ANOTHER bidder for Big Motoring World
- Laurence Vaughan accused of being ‘paid by two masters’ as ‘secret’ payment is revealed
Why did Freshstream oust Waddell?
Waddell was removed from Big Motoring World in early 2024, following a slew of allegations into his conduct.
The High Court has previously heard that his behaviour was ‘abusive, racist, sexist, misogynistic and irrational’, with an internal investigation finding him guilty of ‘bullying’, ‘harassment’ and ‘intimidation’.
Earlier in the current trial, it was revealed that Waddell nicknamed one employee ‘Ching the p***’ because ‘his father ran a corner shop’ and he was accused of calling another a ‘muslim w****r’.
Other allegations include telling a cleaner ‘I bet you’d like to suck my d**k?’, labelling Asian employees ‘Hyundais’ and subjecting a senior member of staff to a ‘truly humiliating experience’.
Overall, Freshstream is said to have investigated 27 allegations, some of which Waddell denies and some of which he claims were taken out of context.
The car dealer has raised multiple concerns about the investigation which resulted in his departure, with his lawyers describing he process as being ‘unfair and discriminatory’.
The trial continues.
