Saturday, 25 August 2012

Mouchel - Triples all round!

Mouchel is such a secure niche fixture of British industry that only a financial hurricane, zero spending on roads or grossly incapable management should be able to bring it down. But bankrupt it was, mostly due to the same greedy, culpably foolhardy and away-with-the-fairies debt-fuelled acquisitions that destroyed the foolish banks, leaving it £170m in debt. Having run the company into the ground, you won't be surprised to hear that the management (including the splendidly named CE Grant Rumbles, who earned a £400k bonus for incompetence) and a consortium of RBS, Barclays and Lloyds, have ..er, taken control of the company, leaving its shareholders with nothing, de-listed it and will now run it for private profit. They made sure their chums in the Big Five got their snouts in the trough, too; fee costs for restructuring 'advice' come to £18m, and in a Buggins-turn sort of way it's KPMG's go at being administrators, earning them a strawberry on top. The incompetent managers get 20% of the new company, the banks get 80% and the former shareholders get flipped the finger.

It's not only the banks where profits are privatised and losses socialised. Pension funds and institutional investors must also now pay for greed, stupidity and arrogance. And yet again, those who belong in jail - including, in my opinion, Grant Rumbles and his entire management consortium, get away scot-free.

4 comments:

Barnacle Bill said...

I think there was also a case of greed on the shareholder's behalf, having rejected previous bids in the hopes of a bigger/later offer appearing on the table.

But what the banks have done to Mouchel is what we should have done to our too big to fail banks in the first place.

Especially the Scottish ones!

Anonymous said...

From here.

[...]"Parkman floated on the London Stock Exchange in June 2001, with Mouchel floating on the London Stock Exchange in 2002.

In September 2003 the two companies merged to form Mouchel Parkman plc; the company quickly established itself as a credible force in each of its core markets.

Since then the company has been going from strength to strength. We have offices across the UK, and in Ireland, the Middle East and Africa.

We’ve grown, both organically and by acquisition. Our latest acquisition, of HBS, a business process outsourcing company, was announced in the summer of 2007.

And in 2007 we rebranded to Mouchel to establish a common position, identity and vocabulary to describe our business."

So after 2007, what went wrong?

G. Tingey said...

I'd never even heard of these tossers before this!

However, it just goes to show - isn't British Management wonderful (NOT)
The collapse of Leyland (thank you wanker Stokes), BSA the entire motor industry - which is doing very nicely under FOREIGN management, now ....
Or GEC, where short-term profits, meant virtually no R&D in an electronics-based company ....
Or the colla[pse of Marconi, fuelled by management greed & stupidity.
And there are STILL idiots (including here) who claim it is all the "unions" fault!
Look again.

Note that in ALL the above cases, management got away with golden parachutes, the workers and middle-management & technical staff were all shafted.

NOT that I am claiming that some union leaders don't have alternative agendas, and should not be watched very carefully, you understand .....

Scrobs... said...

One chum sold his PM company for two mill to a firm just like this.
He bought it back a few years later for a pound...

Bad times for the staff methinks!