James Henderson (businessman)

Last updated

James Henderson
Born
James Brodie Henderson

(1964-12-30) 30 December 1964 (age 59) [1] [2]
São Paulo, Brazil [1]
Education Haileybury and Imperial Service College [1]
Alma mater University of Buckingham [1]
Known forFormer chief executive of Bell Pottinger; former trustee of Children in Crisis [1]
Spouse
Alexandra Fisher
​
​
(m. 1991;div. 2017)​
PartnerHeather Kerzner
Children4

James Brodie Henderson (born 30 December 1964) is an English businessman working in the public relations sector. He founded a successful financial PR firm which merged with a Bell Pottinger company in 2010. Henderson subsequently became chief executive of the Bell Pottinger group, but was forced to resign in 2017 over a scandal relating to its work for a South African client and which also led to the company going into administration (bankruptcy), with the company's administrator later considering lawsuits against Henderson and other former Bell Pottinger partners. In January 2018, he founded J&H Communications Ltd.

Contents

Early career

Born in São Paulo, the son of a Brazilian mother and English father, Henderson grew up in London's Kensington and attended Haileybury and Imperial Service College. [3] He studied law at the University of Buckingham [1] and then worked briefly for a London stockbroker before joining corporate PR firm College Hill (today, Instinctif) [4] in December 1989 – first as a researcher, later as a PR executive [5] – where he spent 14 years (not 12 years as one source [6] suggests), leaving in August 2004.

Henderson then founded a financial PR consultancy, Pelham Public Relations, in November 2004, growing it to a 40-strong, £6m business before approaching Bell Pottinger Corporate and Financial to bring about a merger in 2010. [7] [8] [5]

In the first half of 2011, the company was ranked 14th amongst global, and 8th amongst UK, M&A public relations advisers by Mergermarket, the Financial Times -owned mergers and acquisitions data company. [9] The company's M&A work included acting for Northumbrian Water Group in its agreed acquisition by Cheung Kong Infrastructure Holdings, [9] for Richemont in its acquisition of Net a Porter, Qatar Investment Authority in its acquisition of Harrods and for Universal Music in its acquisition of EMI Recorded Music.

In 2012, Henderson supported Lord Bell in a £20.5m management buy-out of Bell Pottinger from Chime Communications [10] (the total deal value was £26.5m including an ancillary transaction to acquire the Pelham shareholding), with Henderson, holding a 25% equity stake, subsequently appointed group chief executive. [11]

Bell Pottinger

As chief executive of Bell Pottinger, Henderson had to defend the company against criticisms in 2011 of its Whitehall lobbying activities, while conceding the firm was at fault for editing Wikipedia entries [3] (activity which pre-dated his time as CEO).

In 2016, Bell Pottinger was again reported to have manipulated Wikipedia and other social media, on behalf of clients in South Africa, notably the Gupta family-owned Oakbay Investments. [12] [13] In March 2017, it was alleged that Bell Pottinger was behind a social media campaign, using fake bloggers, commentators and Twitter users to influence public opinion and sow racial division in South Africa, as well as targeting media and personalities that were opposed to the Gupta family. [14]

On 30 June 2017, Bell Pottinger announced that it was hiring Herbert Smith Freehills to review its dealing with Oakbay Investments. [15] On 6 July 2017 Henderson issued an apology [16] and announced that the firm had "dismissed the lead partner involved [in the Oakbay portfolio] and suspended another partner and two employees so that [they] can determine their precise role in what took place." [17] [18] However, following a complaint from South Africa's Democratic Alliance, [19] the UK's Public Relations and Communications Association (PRCA) held a disciplinary hearing and on 4 September 2017 announced Bell Pottinger's expulsion. [20] [21] In the meantime, it emerged that Henderson had resigned just days before. [22] Henderson said:

"I recognise the business requires a change of leadership to fix the problems of the past and to move forward. Although I neither initiated nor was involved in the Oakbay work, I accept that as CEO, I have ultimate executive responsibility for Bell Pottinger. I feel deeply let down by the colleagues who misled me. However, I think it is important I take proper accountability for what has happened." [23]

By this stage, Bell Pottinger had appointed accountancy firm BDO to find a buyer, [24] but the company went into administration on 12 September 2017, [25] shedding all its staff by the end of November 2017. [26]

Several employees questioned Henderson's management skills and suggested he became distracted by his then relationship with Heather Kerzner, 48, the ex-wife of the South African casino mogul Sol Kerzner and a friend of Sarah, Duchess of York. A former colleague claimed: "It all went to his head. If he saw a picture of himself [in the paper] he was delighted." [27]

Henderson could yet be liable for the agency's actions. Shareholders were reported to be considering legal action against former Bell Pottinger directors for not disclosing the scale of the problem in South Africa, claiming that this non-disclosure affected their participation in a share buy-back in early 2017. [28] Administrator BDO was reported to be pursuing around 40 former Bell Pottinger partners to repay around £4m, [29] with Henderson asked to repay £400,000. [30] In April 2019, BDO said it could bring lawsuits against former Bell Pottinger partners for their involvement in work for Oakbay, which breached partnership agreements. [31] In October 2019, while 21 former Bell Pottinger partners had repaid £468,000, Henderson was reported to be disputing the amount requested by BDO. [32] [33] In November 2019, the Financial Times reported Henderson was prepared to pay a "materially lower" amount. [34]

In July 2020, it was reported that Henderson and other former Bell Pottinger partners faced potential disqualification from acting as company directors by the Insolvency Service under provisions of the Company Directors Disqualification Act 1986. [35] Henderson vowed to fight any attempts to disqualify him. [36] In November 2020, the Times reported that former partners at Bell Pottinger had yet to repay £1.8 million in "excess drawings" from the business prior to its collapse. Liquidators were also pursuing an unnamed partner for an additional sum, with litigation alleging breach of contract and "significant and related excess drawings". [37] In March 2021, two former Bell Pottinger partners, Nick Lambert and Victoria Geoghegan, failed in a legal action to avoid being banned from acting as company directors. [38] Henderson was not part of this legal action, but had previously described the Insolvency Service's case against him as "weak and misconceived". [39] In March 2023, Sky News reported the Insolvency Service had dropped its case against Henderson, Lambert and Geoghegan. [40]

After Bell Pottinger

In December 2017, it was reported that Henderson was "working for four or five clients" and planned to launch a new business in 2018. [41] In January 2018, J&H Communications Ltd (incorporated on 7 December 2017) [42] was reported to be working for the prime minister of Turkey, [43] and later for property tycoon Robert Tchenguiz. [44] Henderson told PRWeek J&H would concentrate on "corporate, financial, brand, regulatory and reputation management" work. [45]

Personal life

Henderson married Alexandra Fisher in 1991. They divorced in 2017. [1] In the divorce settlement he lost his Clapham house, while the rest of his estimated £7m personal wealth was said to have been invested in Bell Pottinger. [46]

Henderson was engaged to Heather Kerzner. She bought a 15% stake in Bell Pottinger shortly before the South African scandal erupted. Between them, Henderson and Kerzner jointly owned 37% of Bell Pottinger. [47] On 9 September 2017, it was reported that their November wedding had been postponed. [48] [49]

Shortly after, Kerzner was reported to have hired lawyers Grosvenor Law to investigate how to regain some of her Bell Pottinger investment, [50] despite such holdings being effectively worthless as the administrators would prioritise banks and other creditors ahead of equity shareholders. [51] In December 2017, Kerzner took a stake of just under 50% in J&H, Henderson's new firm, [45] but in April 2019 relinquished her significant shareholding. [52]

Henderson's son, Felix, founded a student flat-finding hub called Bubble Student, part-funded by a loan from his father. In November 2019, the business had reportedly run out of money and been mothballed. [34]

Henderson was a Trustee of Children in Crisis and is a past member of Brooks's. [1]

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References

  1. 1 2 3 4 5 6 7 8 "HENDERSON, James Brodie" . Who's Who . Vol. 2017 (online ed.). A & C Black.(Subscription or UK public library membership required.)
  2. ↑ "James Brodie HENDERSON". Companies House . Retrieved 7 September 2017.
  3. 1 2 "Bell Pottinger was a scapegoat, says new boss James Henderson who's on a recovery mission". London Evening Standard. 13 March 2013. Retrieved 5 September 2017.
  4. ↑ Mattinson, Alec (3 February 2014). "College Group rebrands to Instictif Partners". PR Week. Retrieved 5 September 2017.
  5. 1 2 "James Henderson describes his career highs so far and plans for the future". PRmoment. 23 October 2014. Retrieved 5 September 2017.
  6. ↑ Williams, Tom (20 August 2004). "Henderson set to leave College Hill after 12 years". PR Week. Retrieved 5 September 2017.
  7. ↑ Evans, Simon (24 October 2009). "Chime close to deal to buy Pelham PR firm and merge it with Bell Pottinger". Independent. Retrieved 5 September 2017.
  8. ↑ Keens, Emma (10 November 2009). "Lord Bell's Chime agrees to merge its Bell Pottinger unit with Pelham PR". City AM. Retrieved 5 September 2017.
  9. 1 2 "mergermarket League Tables of PR Advisers Q1-Q3 2011" (PDF). Mergermarket. Retrieved 20 August 2012.
  10. ↑ Sweney, Mark (31 May 2012). "Chime agrees £20m Bell Pottinger sell-off". The Guardian. Retrieved 5 September 2017.
  11. ↑ See article Talk page regarding email exchange with James Henderson.
  12. ↑ De Wet, Phillip (18 March 2016). "Gupta image gets cleaned up online". Mail and Guardian. Retrieved 24 March 2016.
  13. ↑ Dixon, Robyn (10 July 2017). "How a London PR firm was forced to apologize for sowing racial division in South Africa". Los Angeles Times . Johannesburg. Retrieved 11 July 2017.
  14. ↑ Skiti, Sabelo; Shoba, Sibongakonke (19 March 2017). "'White monopoly capital' chosen distraction in PR strategy to clear Guptas". The Sunday Times. Johannesburg. Retrieved 7 April 2017.
  15. ↑ Cotterill, Joseph (30 June 2017). "Bell Pottinger orders review of South African role". Financial Times. Retrieved 3 July 2017.
  16. ↑ Bell Pottinger. "Oakbay Capital statement" (PDF). Retrieved 6 July 2017.
  17. ↑ "Bell Pottinger fires lead partner and suspends three other employees over Gupta account". Sunday Times (Johannesburg). 6 July 2017. Archived from the original on 6 July 2017. Retrieved 6 July 2017.
  18. ↑ Cotterill, Joseph (6 July 2017). "Public relations firm Bell Pottinger apologises over Gupta contract". Financial Times. Archived from the original on 6 July 2017. Retrieved 6 July 2017.
  19. ↑ "DA to report Bell Pottinger to international PR bodies for unethical behaviour". Democratic Alliance. Retrieved 3 July 2017.
  20. ↑ "BREAKING: Bell Pottinger expelled from PR body for Gupta work". Fin24. Retrieved 4 September 2017.
  21. ↑ Johnston, Chris (4 September 2017). "Bell Pottinger expelled from trade body for South African campaign". BBC News . Retrieved 4 September 2017.
  22. ↑ Inman, Phillip (3 September 2017). "Bell Pottinger chief quits ahead of ruling on race hate campaign claims". The Guardian. Retrieved 4 September 2017.
  23. ↑ Key, Alys; Harris, Julian (4 September 2017). "Bell Pottinger senior management criticised in damning South Africa report as chief executive resigns". City AM. Retrieved 5 September 2017.
  24. ↑ Cotterill, Joseph; Bond, David (5 September 2017). "Scandal-hit Bell Pottinger hires BDO to advise on sale". Financial Times. Retrieved 12 September 2017.
  25. ↑ Turvill, William (25 September 2017). "Personality clashes and the poisoned client: The inside story of Bell Pottinger's collapse". City AM. Retrieved 27 September 2017.
  26. ↑ James, Sam Burne (28 November 2017). "Bell Pottinger was 'holding head above water' but was rejected by 22 potential buyers". PR Week. Retrieved 13 December 2017.
  27. ↑ Kenber, Billy (9 September 2017). "A-PR-disaster:-feuding-bosses'-toxic-row-sent-Bell-Pottinger-into-a-spin". The Times. Retrieved 9 September 2017.
  28. ↑ Dunne, Helen (10 October 2017). "Bell Pottinger shareholders consider legal action". Corporate Communications. Archived from the original on 13 June 2020. Retrieved 13 October 2017.
  29. ↑ Kinder, Tabby (11 October 2018). "Top Bell Pottinger staff face demand to pay back £4m". Times. Retrieved 29 April 2019.
  30. ↑ Kinder, Tabby (27 February 2019). "Bell Pottinger boss Henderson told to repay £400,000". Times. Retrieved 29 April 2019.
  31. ↑ Harding, LaToya (16 April 2019). "Bell Pottinger partners may face legal action over firm's collapse". Telegraph. Retrieved 29 April 2019.
  32. ↑ Warrington, James (23 October 2019). "Administrators hunt Bell Pottinger partners in bid to claw back 'excess' pay". City AM. Retrieved 2 January 2020.
  33. ↑ O'Dwyer, Michael (23 October 2019). "Bell Pottinger's former boss locked in dispute over demand for £400,000". Telegraph. Retrieved 2 January 2020.
  34. 1 2 Jenkins, Patrick (15 November 2019). "James Henderson: Burst bubble". Financial Times. Retrieved 2 January 2020.
  35. ↑ Kleinman, Mark (8 July 2020). "Former Bell Pottinger bosses face boardroom ban after PR firm's collapse". Sky News. Retrieved 4 August 2020.
  36. ↑ Lawson, Alex (24 September 2020). "Former Bell Pottinger boss James Henderson vows to fight possible boardroom ban". Evening Standard. Retrieved 29 December 2020.
  37. ↑ Hurley, James (26 November 2020). "Bell Pottinger partners still owe £1.8m". Times. Retrieved 29 December 2020.
  38. ↑ Clarence-Smith, Louisa (24 March 2021). "Bell Pottinger partners fail in legal bid". Times. Retrieved 7 April 2021.
  39. ↑ Cronje, Jan (24 March 2021). "Masterminds behind Bell Pottinger's Gupta PR campaign lose bid to block legal action". News24. Retrieved 7 April 2021.
  40. ↑ Kleinman, Mark (4 March 2023). "Insolvency Service drops case against ex-Bell Pottinger partners". Sky News. Retrieved 9 March 2023.
  41. ↑ Lynch, Andrew (10 December 2017). "For whom the Bell Pottinger tolls". Times. Retrieved 13 December 2017.
  42. ↑ "J&H Communications Ltd". Companies House. Retrieved 5 April 2018.
  43. ↑ Walsh, Dominic (19 January 2018). "Bell Pottinger chief back in game and talking turkey". Times. Retrieved 29 January 2018.
  44. ↑ Kelly, Liam (8 July 2018). "Fallen spinner out of the frying pan". Times. Retrieved 2 January 2020.
  45. 1 2 Rogers, Danny (2 February 2018). "Former Bell Pottinger boss James Henderson launches new venture". PR Week. Retrieved 5 April 2018.
  46. ↑ Jenkins, Patrick (22 September 2017). "James Henderson: On hold". Financial Times. Retrieved 27 September 2017.
  47. ↑ "Sol Kerzner's former wife owns 15% of Bell Pottinger". Business Day. South Africa. 24 July 2017. Retrieved 5 September 2017.
  48. ↑ Bird, Steve (9 September 2017). "High society Bell Pottinger wedding on hold as troubled PR firm's reputation takes a spin". The Daily Telegraph. Retrieved 12 September 2017.
  49. ↑ Sweney, Mark (10 September 2017). "Bell Pottinger Middle East bids to split from parent firm as administration nears". The Guardian. Retrieved 12 September 2017.
  50. ↑ Bond, David (15 September 2017). "Heather Kerzner attacks 'cancer of a few people' at Bell Pottinger". Financial Times. Retrieved 27 September 2017.
  51. ↑ Sweney, Mark (15 September 2017). "KPMG chiefs in South Africa quit amid Bell Pottinger scandal". The Guardian. Retrieved 15 September 2017.
  52. ↑ "Cessation of Heather Lindsay Kerzner as a person with significant control on 26 April 2019". Companies House. Retrieved 11 September 2020.
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