Men's wear distributor Marchpole Holdings Plc has settled its long-running feud with former chief executive Michael Morris.

The company, which holds the British licence for fashion houses Yves St Laurent and Jasper Conran, said in a statement it has agreed "to pay Mr Morris a sum in compensation for his loss of office together with a contribution towards his legal fees and, in turn, Mr Morris has agreed to assist the company in recovering certain payments due to it."

The size of the payment has not been revealed, and the payments being recovered are believed to consist of debts of around £2.5 million owed by customers. Although he still owns a 26 per cent stake in the Marchpole, Morris will have no say in its day-to-day running.

"With this major distraction now behind us, we look forward to growing the company in a controlled and focused manner over the coming years," said chairman Tony Caplin. It is thought that Caplin intends to move the company into the market for luxury branded goods.

In June, a dispute between shareholders and directors, led by clothing entrepreneur Harold Tillman and Michael Morris, resulted in the resignation of Marchpole's four board members.