Snoozebox investors face more worry as founder quits

The Aim-quoted firm, which uses converted shipping containers to create temporary hotels at events such as the Edinburgh festivals and the Silverstone grand prix, admitted last week that it needed a “more rigorous approach to management” and extra funding to support its plans this year.

Breare, the former chairman of designer label Ted Baker and the co-founder of hotel chain Malmaison, stepped down as chief executive following a “disappointing” full-year loss last month.

The company, which is fronted by former F1 racing driver David Coulthard as its president, appointed a new finance director and said chairman David Morrison would chair its executive committee. Breare had been due to stay on as a director with a focus on sales and development. However, the group announced his departure in a one-line statement to the stock exchange yesterday.

It said: “Following the management reorganisation, Robert Breare has decided to resign from the board with immediate effect and has left the company.”

Snoozebox posted a pre-tax loss of £4.4 million for 2012, up from £1.3m the previous year, despite revenues growing from £35,000 to £3.8m.

The figure missed the group’s own forecasts due to “uncertainties regarding the amount of revenue from Olympic-related contracts”, although Morrison insisted Snoozebox had maintained momentum and a strong pipeline for the current year.

The company also said that of the 14 events which it planned to attend, it has decided to withdraw from two because returns were likely to be “inadequate”.