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Case
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Reference no. 380-028-1
Authors: Tom McEwan (University of Portsmouth)
Published in: 1980

Abstract

The case study examines how a British confectionery company attempted to make up for a loss by borrowing and by using the cash obtained from the sale of one of its interests in order to diversify into 23 subsidiary companies over a two year period. Initially, substantial profits were reported, but these were followed by losses of over £7m by the mid 1970s. The company was brought to the verge of bankruptcy which has only been avoided by widescale retrenchment and new business strategies.
Location:
Industry:
Size:
2,300-6,400 employees
Other setting(s):
1968-1980

About

Abstract

The case study examines how a British confectionery company attempted to make up for a loss by borrowing and by using the cash obtained from the sale of one of its interests in order to diversify into 23 subsidiary companies over a two year period. Initially, substantial profits were reported, but these were followed by losses of over £7m by the mid 1970s. The company was brought to the verge of bankruptcy which has only been avoided by widescale retrenchment and new business strategies.

Settings

Location:
Industry:
Size:
2,300-6,400 employees
Other setting(s):
1968-1980

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