Post by Deleted on Apr 9, 2019 21:32:05 GMT
£150 million investment turns to dust
While none of us would make comparisons between Debenhams and a non league football club, some wider considerations may be worth reflecting on.
Mike Ashley has got a (possibly well deserved) bad press from the BBC for a number of years, and so it’s no real surprise that the highest rated readers comments related to the above article, all comprise of posts made by those now rejoicing in the money he’s lost.
While Ashley has been putting money into Debenhams by means of buying up shares, it’s current predicament results, so the BBC informs us, that he becomes £150 million poorer overnight:
It means that Mr Ashley's near 30% stake in the company, which cost about £150m to build up, is wiped out.
The BBC goes on to explain that: ’In the end, lenders were calling the shots on the fate of this business’.
It seems obvious that there were a number of parties involved who, to say the very least, didn’t welcome Ashley’s involvement in Debenhams.
For any businessman, if you feel that there are pernicious forces in play, some of whom, perhaps judging by their past pronouncements might be more likely to be working against you rather than with you, it is wise to think extremely carefully by which means to allocate your money, as a safeguard against the unexpected, or a joint effort to pull the rug from under you, or obstruct your ideas in other ways.
Mike Ashley’s heavy losses will provide a cautionary tale for some prospective investors. There are a number of implications and factors to assess, and in taking a financial interest in any Company, be it big or small, a savvy businessman will want to avoid any of the traps that he fears others might rather like to see him fall into.
I’m sure our Chairman thinks carefully about all the known factors that are in play before deciding on the most prudent way of providing finance to any of his businesses.
