David Ross (businessman)
David Ross | |
|---|---|
| Born | July 10, 1965 Lincoln, England |
| Occupation | Entrepreneur |
| Known for | Co-founder of Carphone Warehouse |
David Peter John Ross (born 10 July 1965) is a prominent English entrepreneur and co-founder of Carphone Warehouse, alongside Charles Dunstone and Guy Johnson. At the height of his career in 2008, Ross was ranked among the top 100 wealthiest individuals in the UK, with his personal fortune estimated at £873 million. That same year, Forbes placed him at number 843 on its global billionaire list, valuing his net assets at approximately US$1.4 billion. By April 2015, The Sunday Times assessed his wealth to be around £1.0 billion, while the 2020 Rich List reported a decrease to £642 million, marking a £26 million drop compared to the previous year.
Early life
Born on 10 July 1965, Ross is the grandson of Carl Ross, who significantly expanded the family enterprise into one of the UK’s leading commercial fishing businesses, which later evolved into Ross Group. The family also acquired Cosalt, a longstanding supplier serving fishing fleets; both companies were publicly traded on the London Stock Exchange.
Ross received his education at Uppingham School and gained early work experience on a construction site in Algeria at age 16—an experience that profoundly influenced his determination to steer his own professional journey. He graduated with a Bachelor of Arts degree in law from the University of Nottingham and qualified as a chartered accountant while employed at Arthur Andersen between 1988 and 1991.
Carphone Warehouse
Ross formed a friendship with Charles Dunstone during their time at Uppingham. Dunstone initially founded Carphone Warehouse in a London flat using £6,000 in savings and invited Ross to join the company as finance director two years later. Some accounts recognize them both as co-founders, possibly sharing initial capital contributions. Within four years, the enterprise expanded to twenty retail outlets and experienced rapid growth through acquisitions and organic development.
While Dunstone was widely regarded as the company’s public representative, Ross—often described as his "secret weapon"—was instrumental in establishing Carphone Warehouse’s high-street retail footprint by acquiring Tandy stores across the UK and expanding operations into European and American markets. The company diversified into telecommunications by launching TalkTalk ISP in 2003 and acquiring firms such as AOL. By the time of its 2000 IPO, Carphone Warehouse had grown without relying on external debt; ownership was divided with Dunstone holding half, Ross owning one-third, and Guy Johnson possessing most of the remaining shares.
Ross held the position of finance director from 1991 until 1996 before serving as joint chief operating officer until 2003. He gradually stepped back from daily management responsibilities thereafter, becoming deputy chairman in 2005 and transitioning to a non-executive director role by 2008.
His achievements at Carphone Warehouse paved the way for leadership roles beyond the company. Ross was chairman of National Express starting in 2001 and served as a director for Trinity Mirror, Big Yellow Storage, and Frontiers Capital.
Kandahar Real Estate
Ross founded Kandahar, a private investment entity specializing in UK high street property markets—a sector he became familiar with during Carphone Warehouse’s expansion. In 2006, he initiated a £500 million commercial property joint venture with Morgan Stanley under Kandahar Real Estate Ltd. Ross contributed Kandahar’s portfolio comprising one million square feet of high-street properties, while Morgan Stanley added assets including the recently completed Drake Circus Shopping Centre in Plymouth. The partnership encountered difficulties following the 2008 financial downturn but managed to secure a £460 million refinancing package from HBOS in 2007.
2008 resignations and subsequent developments
In December 2008, Ross stepped down from his roles at Carphone Warehouse, National Express, and Big Yellow following a breach of stock market regulations. He had used a substantial number of shares as collateral for personal loans without proper disclosure. The Financial Services Authority (FSA) later identified discrepancies within EU rules regarding such collateral arrangements and provided a brief amnesty period allowing directors to declare similar transactions. Despite the controversy surrounding Ross, no additional regulatory penalties were imposed.
Kandahar's principal asset, the Drake Circus shopping centre, was sold to British Land in January 2011 for £240 million. Throughout 2011, Kandahar continued to reduce its holdings by selling other shopping centres located in Bishops Stortford, Caterham, Ipswich, and Market Harborough as part of its portfolio wind-down.
Cosalt
Continuing the family tradition, Ross took on the chairmanship of Cosalt starting in 2007, by which time the group was mainly engaged in offshore safety operations. He took a one-year hiatus between 2008 and 2009 due to complications related to pledging shares—including those of Cosalt—as loan security. Although the company raised £27 million through the sale of its marine division, it encountered significant financial challenges by 2011. Holding a 15% stake and having provided loans to Cosalt, Ross responded to an October profits warning by proposing to take the company private. He initially offered £400,000 to delist Cosalt from the stock exchange where it had been listed since 1971. Despite increasing his bid and injecting additional capital via his investment vehicle, shareholders ultimately declined the offer. Some investors called for inquiries into Ross’s conduct, alleging he exploited his position to acquire the company at an undervalued price. Ross defended his actions as being in the company’s best interests, highlighting that pension fund obligations had effectively doubled its valuation. Around this time, trading in Cosalt shares was suspended due to regulatory breaches related to failing to file 2011 accounts on a going concern basis.
Unable to obtain financing from banks or pension trustees, Cosalt entered administration in February 2013. At that point, Ross along with two banks were creditors owed £17 million; Ross’s ownership had increased to 46%. The business faced a pension deficit totaling £50 million upon collapse. According to Private Eye, Ross reacquired company assets at significantly reduced prices, recovering a larger portion of his investment than other creditors. PricewaterhouseCoopers acted as joint administrators and sold the Ballyclare workwear division back to Ross for £5.8 million, safeguarding jobs and ongoing operations. Ross expanded his presence in workwear further by purchasing Simon Jersey in 2014.
Parliament questioned the Insolvency Service’s decision not to disqualify Cosalt’s directors from holding future office. Minister Jo Swinson explained that there was insufficient evidence of wrongdoing to justify further investigation or prosecution for failure to submit accounts.
Other business ventures
Following Cosalt’s collapse in 2013, Ross resigned as deputy chairman of the Humber Local Enterprise Partnership, which curtailed his engagement with local commerce despite earlier investments in wind energy projects. The Ballyclare workwear division operated out of Barnsley and Stockport, locations outside the Humber region.
With a keen interest in sports, Ross served on the board of Wembley Stadium and collaborated with Gary Lineker in rescuing Leicester City Football Club from receivership prior to its acquisition by Milan Mandarić.
Political involvement
Ross holds membership in the Conservative Party's "The Leader's Group," characterized by The Independent as an exclusive dining society granting donors who contribute upwards of £50,000 annually privileged access to David Cameron. By February 2020, Ross had contributed in excess of £700,000 to the party, including a £10,000 donation toward Boris Johnson's leadership bid in 2019. Additionally, he financed Johnson's accommodation for a holiday in Mustique in December of that year. Although Johnson was cleared of any ethical violations, both individuals drew criticism from the Commons Standards Committee in July 2021 for failing to be transparent about these arrangements.
Philanthropy and cultural contributions
In February 2006, Tony Blair appointed Ross to the board of the National Portrait Gallery to bring senior-level expertise in financial management, accounting, strategic oversight, and risk assessment. Later that year, allegations of cronyism surfaced when the Gallery commissioned a photographic portrait of Ross; however, he had no role in initiating the commission. Having served as a trustee since 2015, Ross made a donation exceeding £1 million to the Gallery in 2023.
In May 2012, Ross participated in "The Dallaglio Flintoff Cycle Slam 2012," a charity cycling event from Olympia, Greece to Stratford, London, benefiting foundations established by Andrew Flintoff and Lawrence Dallaglio. He also hosts the yearly Nevill Holt Opera festival.
Originating from Lincoln, Ross sponsored the David P J Ross Vault at Lincoln Castle, which preserves Lincoln Cathedral’s copies of the 1215 Magna Carta and the 1217 Charter of the Forest.
In July 2020, Ross was named chair of the Board of Trustees at the Royal Opera House, taking over from Ian Taylor.
Educational initiatives
Ross established the David Ross Foundation in 2006 with a mission to empower children and young people by providing exceptional educational opportunities that help them identify their talents. The Foundation supports the David Ross Education Trust, which manages numerous academies and free schools throughout England. Since backing its first academy in 2007, the Trust oversaw 25 educational institutions by 2014. Ross also acts as chairman of the New Schools Network, a charity dedicated to supporting free schools.
In 2015, Ross joined the Council at Nottingham University. He was shortlisted for the chairmanship of Ofsted in 2014 but withdrew his candidacy amid concerns regarding potential conflicts of interest related to his political donations and involvement with academies.
Sports affiliations
Following Boris Johnson’s election as London Mayor in 2008, Ross was appointed to the London Organising Committee for the 2012 Olympic Games but resigned within that year amid controversy. Johnson additionally appointed him to roles on both the London Legacy Development Corporation—responsible for redeveloping Olympic Park—and London United, which supported London's bid for hosting the 2018 FIFA World Cup.
Ross joined the board of Commonwealth Games England in 2013 and serves as a non-executive director for the British Olympic Association. He has also supported his alma mater, the University of Nottingham, contributing to the development of the £40 million David Ross Sports Village that opened its doors in 2016.
Personal life
Ross shares a son with Michelle "Shelley" Ross, a former partner who bears his last name. He has also been romantically associated with prominent individuals such as Saffron Aldridge and Ali Cockayne.
His main home is the Nevill Holt estate, a 13th-century, Grade I-listed property situated near Market Harborough, Leicestershire, into which he has poured millions of pounds. Beyond this, he has owned residences in Kensington, Mustique, and Switzerland, where he lived for a period as a tax exile. He once possessed a second rural estate located at Brampton Ash, Northamptonshire, which he sold in 2008 after experiencing a family loss. Ross is well-known for his passion for shooting and entertaining; in 2007, he acquired 4,500 hectares of grouse moor in Yorkshire, frequently enjoying these activities alongside notable personalities such as Gary Lineker and Richard Branson.