What is it with CEOs of sound companies 'playing' markets? Pub boss quits lost £69ml

B

Black Swan

Michael O'leary lost approx. £200ml on oil 'bets' last year also, oil's kinda crucial to their business obviously, but stick to the day job eh Micheal? The loss must be why he's thinking of charging you 2 quid to use the in flight bogs in summer. Just pi55 in the aisles, they'll never know...

Pub boss quits after £69m loss

The boss of pubs group Mitchells & Butlers has quit the business after it lost £69 million in a disastrous bet on interest rates.

The All Bar One and Harvester owner said chief executive Tim Clarke stood down after it settled a "swap contract" which had sought to protect the firm's medium term borrowings from rising rates.

M&B, which operates 2,000 pubs, said underlying pre-tax profits for the six months to April 11 fell 48% to £44 million but its recent trading had been robust.

The latest liability adds to earlier losses on a previous hedge that led to the departure of Karim Naffah, the finance director.

Mitchells said chief operating officer Adam Fowle will take on leadership duties on an interim basis.

Mr Clarke became chief executive of Mitchells on its separation from Six Continents in 2003, having held the same role at that firm.

Chairman Drummond Hall said the board accepted the resignation of Mr Clarke with "great regret".

He added: "He has been the architect of the company's success since it was created in 2003 and we are grateful for his outstanding contribution."
The boss of pubs group Mitchells & Butlers has quit the business after it lost £69 million in a disastrous bet on interest rates.

The All Bar One and Harvester owner said chief executive Tim Clarke stood down after it settled a "swap contract" which had sought to protect the firm's medium term borrowings from rising rates.

M&B, which operates 2,000 pubs, said underlying pre-tax profits for the six months to April 11 fell 48% to £44 million but its recent trading had been robust.

The latest liability adds to earlier losses on a previous hedge that led to the departure of Karim Naffah, the finance director.

Mitchells said chief operating officer Adam Fowle will take on leadership duties on an interim basis.

Mr Clarke became chief executive of Mitchells on its separation from Six Continents in 2003, having held the same role at that firm.

Chairman Drummond Hall said the board accepted the resignation of Mr Clarke with "great regret".

He added: "He has been the architect of the company's success since it was created in 2003 and we are grateful for his outstanding contribution."
 
Why were they borrowing so much in the first place, that they thought it necessary to engage in such shenanegins? And did the rest of the board agree to this? If so, then they should all resign.
 
Simple - some broker made a sweet penny on the deal & convinced the 'smart' people int he company that this was a great deal.

Salesmanship at it's worst & finest...
 
I like to think that I was taking the other side somewhere down the line, and thus All Bar One have been paying me to drink at their place.
 
I like to think that I was taking the other side somewhere down the line, and thus All Bar One have been paying me to drink at their place.

D'ya know, it's probably that kind of lateral thinking that sets you apart....
 
Why were they borrowing so much in the first place, that they thought it necessary to engage in such shenanegins? And did the rest of the board agree to this? If so, then they should all resign.

Stunning isnt it? Still way behind the best deal (scam) ever, that goes to Philip Green who loaded (borrowed) his company with £1 bil of debt then paid his wife the same in dividends, that's some world class 'stiffing' that is.:clap:
 
The bigger they are the harder they fall ...... eg the banks

and most small fish don't have the nouse to use gearing and derivs etc. But when your average punter does ...... just look at spreadbetting: don't 95% fail or something?
 
One of the reasons these CEOs get involved in this crap is they're softened up and sold by the investment banks who at the end of the day are in business for themselves.

My advice, if an investment banker comes knocking at your door look for the fool and if you can't see him look in the mirror. Personally I'd rather trust a small time street thief.
 
Top