[Osem]

Originally Posted by Stop It

Well, this is sad all round, but shows that it depends on your viewpoint when you say this is "cynical timing" or not.

City Link have been burning money for years. The writing was on the wall last year when Rentokil Initial gave up on them and this "Better Capital" fund bought them.

These turnaround companies have a very hit and miss recond, not because they are inherantly good or bad, but because even due diligence fails to show how bad a company might be. On the face of it, City Link could've been turned around. After all it was operating in an expanding market, with a decent reliable network and a well known brand.

Alas, it was not to be, much like what happened to Comet in remark similar circumstances. The opposite story can be found in GAME which WAS turned around, brilliantly.

Yes, the timing was obviously planned. Better Capital have lost shed loads on this, and didn't want to lose any more. The moment Christmas was over they would be back to bleeding money so they called time, which is fair enough. bad timing but anyone working there who didn't see this coming didn't have their eyes open.

Nobody wins in cases like this. Turnaround companies do a lot better when the companies they take over actually make a profit! Tax deductibles don't pay for millions back that they lost, nor do they keep jobs viable. They do work for bigger companies with divisions who don't seem to work (Hello Sony!) and have the rest of the company pay their way, however. That generally only works if the company continues trading, however.