The finance director of Mitchells & Butlers (M&B) Karim Naffah has resigned after the company closed a hedge position at a cost of £274m after tax. The hedge position was taken out last summer in preparation for a joint venture property transaction with activist investor Robert Tchenguiz. Chief executive Tim Clarke also offered his resignation but it was turned down by the board because it was thought "in the best interests of the company that he should continue to lead the operational out-performance of the business". A statement by M&B said: "Management, supported by advisers and the Board, acted professionally and diligently in the preparation of the financial package for the proposed joint venture with R20 and the subsequent retention of the hedge, but fell victim to the global credit crunch which began in the midst of the final execution of the transaction." Jeremy Townsend, currently deputy finance director, will be appointed to the board as finance director.