Dark future awaits Morrisons in the hands of private equity financiers

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And they certainly don’t think Morrisons is about to jump from the fourth place it has held in the supermarket rankings for nearly twenty years. CD&R doesn’t even seem to have a plan to improve performance, choosing instead to support management and its current strategic plan.

Then expect the usual tips. A £ 3.4bn financial package is already slated to fund around two-thirds of the supply, meaning Morrisons’ debt will more than double overnight.

But with profits reduced by the cost-of-living crisis enveloping the country and interest rates set in one direction, starting next year there will be immediate concerns about the burden on the service. these loans. Food and fuel supplies are also strained, raising serious questions about the wisdom of investing in the grocery industry at this point.

Loose commitments to avoid sales of major assets should be treated precisely like this. The company is ripe for a classic break that would threaten jobs, eat away at its culture and its ability to determine its own destiny. Bankers describe the chain as essentially being four businesses in one: basic grocery operations; stores; factories; and gas stations.

But if Leahy’s gang sticks to their word, it simply increases the likelihood of widespread cost reduction with consequences for customer service, investment, headcount, and vendor conditions.

One of the big frustrations is that if the Morrisons board of directors had rolled out one of the quick-money-making schemes that are common practice in private equity, it might have increased the price of the l ‘action and kept the vultures out of the door in the first place, but courage and vision was lacking.

With their eyes firmly fixed on a shared salary of £ 39million, senior management abandoned the company to its fate.

Make things embarrassing

You have to hand it over to the marketing geniuses at HSBC. Few companies are this bad at advertising. First, they brought us the “we are not an island” campaign. Designed as a deep celebration of internationalism, it felt more like anti-Brexit propaganda.

Its latest effort is to remove borders because they apparently cause more friction and problems than they solve. It’s a clumsy take for an organization that insists it doesn’t play politics but is happy to give legitimacy to the authoritarian Chinese regime by doubling its presence there, and even freezing student bank accounts. protesters in Hong Kong.

Beijing has spent the past two years trying to weaken the border with the former British colony so it can lock up militants and tighten its grip on the region. In that sense then, at least HSBC is on the message. If there is one thing that is bad for opponents of national sovereignty and democracy, it is these pesky borders.


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