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Originally Posted by Ignitionnet
Companies who have huge seasonal spikes in demand and don't invest in capacity for them die even more quickly than companies who do. You'll note not a single mention of permanent staff there, all temporary, and it looks as though they are referring to delivery performance, not financial.
It's a press release. Companies that announce before their biggest part of the year that they are burning cash faster than a coked up banker or that they have no intention of uplifting their capacity to service customers tend to lose business 
This seems to go along with what I said earlier. They ramped up, have taken the cash from the peak demand period and after this period is done have begun winding the company up. I'm sure had it been Christmas more often than once a year the finances would have been different.
They would, no question, have been planning to wind the company up on Christmas Eve for a while.
Sadly the company had been burning cash for a while, hence their sale for £1 and their burning through a £40 million cash injection.
It's a real shame; they are casualties of an industry that has rushed, headlong, towards the bottom. |
Without seeking to be disingenious I understand perfectly well how seasonal supply and demand works from both a resource and perfomance basis, thanks.
Where does it say all the staff being recruited will be temporary? Sorry if I've missed it.
Yes, agreed, it is a real shame but the fact is it wasn't mismanaged into administration by the staff on the ground who, as always, are the ones to suffer most.