A leading analyst has called the £274m post-tax loss incurred by Mitchells & Butler from the closure of its controversial hedge fund a "monumental, career-ending debacle of the first order".
Mark Brumby, of Blue Oar Securities, said: "Cost is £274m after tax or some circa £391m pre-tax, representing virtually 24 months of graft from the group's 43,000 employees.
"The chief financial officer has gone, the chief executive has tendered his resignation but is staying & the chairman is glued to his seat - but it is hard to see how anyone associated with this catastrophe can stay with the company.
"The only thing that could be done to compound this mess is if the management were to go on to sell the company for the wrong price and, with Mr Tchenguiz now at 22%, there is a real chance of that happening.
"M&B is at a crossroads. It could be seen as a rudderless bid-target with a caretaker management handing the company on to a bidder in due course.
"However, though a merger with Punch Taverns (PUB) would make eminent sense, it's difficult to make the numbers work this side of the current economic slowdown and M&B would be a large swallow for a vulture fund with no synergies to bring to the deal.
"The positions of Tim Clarke (CEO) and Roger Carr (Chairman) remain a part of the above equation.
"Whilst we have a degree of sympathy (in that the debt crisis could hardly have been foreseen), the remaining directors have ridden their losses from c£86m to c£420m and shareholders do not want to see the company sold too cheaply.
"Cost is £274m after tax or some c£391m pre-tax, representing virtually 24 months of graft from the group's 43,000 employees."