Lots of Rumours Wellgrain has gone bust?

Mr Charisma · Mar 9, 2017

On a slightly different tack I'm so glad that all my grain is insured as and when it is loaded onto a lorry ,,,,,., yes I sell into one of those horrible pool thingies that all the clever buggers hate but at least I know I'm on a reasonably safe wicket

Sorry to all those concerned tho !!!!!!!

Woldgrain Storage · Mar 9, 2017

Fuzzy said:
However if a company like Wellgrain with an £85m turnover can go down, are you sure that no others can go the same way ?

I would entirely agree that no business is immune to the adverse effects of market forces.

A turnover figure of £85m is fairly worthless if your margins are thinner than a wafer thin after-dinner mint.

The scale of the national merchants' operations makes such tight margins much more viable.

Openfield's turnover is £750m

Frontier's turnover is £1.4bn

(The turnover of Frontier's parent company is $107bn)

D14 · Mar 9, 2017

Woldgrain Storage said:
I would entirely agree that no business is immune to the adverse effects of market forces.

A turnover figure of £85m is fairly worthless if your margins are thinner than a wafer thin after-dinner mint.

The scale of the national merchants' operations makes such tight margins much more viable.

Openfield's turnover is £750m

Frontier's turnover is £1.4bn

(The turnover of Frontier's parent company is $107bn)

I think you are missing a vital point here in that quite a lot business people are out for themselves so they are not really bothered about the company or the customers, so in reality the amount of money actually removed from well grain which has subsequently caused this issue could actually mean the guy at the top has actually had a massive margin out of it.

Woldgrain Storage · Mar 9, 2017

I would agree that the owners of Wellgrain could have (perfectly legally) taken advantage of the principles of Limited Liability, whereby individuals are not held personally responsible for the entirety of a company's losses.

David. · Mar 9, 2017

So, on from that, does it matter what the turnover/profitability of the parent company is if they can divest themselves of the bit of their operation that sucks, and walk away. Or would that be illegal?

D14 · Mar 9, 2017

David. said:
So, on from that, does it matter what the turnover/profitability of the parent company is if they can divest themselves of the bit of their operation that sucks, and walk away. Or would that be illegal?

Proving it is extremely hard and why this countries legal system with regards to business is completely inadequate and outdated. It needs a complete overhaul as building up debts, removing cash and then liquidating business is far to easy. I mentioned this before on another thread and was told to remember good old fashioned trust. I am afraid that does not exist in business any longer. I've seen this outside of agriculture a lot myself and via my other half's working world. Its rife I am afraid.

Grain Buyer · Mar 9, 2017

Fuzzy said:
And so too the debtors list !

doubt the debtors will be bothered.

bankrupt · Mar 9, 2017

Grain Buyer said:
doubt the debtors will be bothered.

Rather Grant Thornton than PwC.

Sussex Martin · Mar 9, 2017

D14 said:
Proving it is extremely hard and why this countries legal system with regards to business is completely inadequate and outdated. It needs a complete overhaul as building up debts, removing cash and then liquidating business is far to easy. I mentioned this before on another thread and was told to remember good old fashioned trust. I am afraid that does not exist in business any longer. I've seen this outside of agriculture a lot myself and via my other half's working world. Its rife I am afraid.

Yes, I know of people that are serial liquidators, when things get a bit hot with one company they then liquidate it and start another the next day. The laws allowing people to do this need updating. As you say, there is very little trust in business today, I've learned the hard way

.

cambnet · Mar 9, 2017

Anyone here from Cambridgeshire that is owed money by Wellgrain?

David. · Mar 9, 2017

cambnet said:
Anyone here from Cambridgeshire that is owed money by Wellgrain?

Why, are you?

Honest john · Mar 9, 2017

Bernard Matthews went under in early October 2016. Were Wellgrain stung in the 23Million unpaid by BM ?

Then started Factoring which in a low margin business is the road the certain death. The Creditors or there insurers end up paying the bank off.

Let's face it the accounts were OK at June 16. Well ! In Profit.

Sonoftheheir · Mar 9, 2017

Honest john said:
Bernard Matthews went under in early October 2016. Were Wellgrain stung in the 23Million unpaid by BM ?

Then started Factoring which in a low margin business is the road the certain death. The Creditors or there insurers end up paying the bank off.

Let's face it the accounts were OK at June 16. Well ! In Profit.

They were owed about £29K last September.
Here is the creditors list for BM, it's hard to believe how much some were owed -

https://infogr.am/c1ec1c46-4505-4a9f-b7dd-d69669d23a1a

Fuzzy · Mar 9, 2017

Sonoftheheir said:
They were owed about £29K last September.
Here is the creditors list for BM, it's hard to believe how much some were owed -

https://infogr.am/c1ec1c46-4505-4a9f-b7dd-d69669d23a1a

Openfield owed £605k ouch! and Gleadell £384k
I'm not sure why they would owe Tescos over a million, should it not be the other way round ??

Honest john · Mar 9, 2017

Openfield if they were not insured hit hard. Gleadell & Nidera but no Frontier or Fengrain.
But Wellgrain at 28K that's not the reason then ?

What were Tesco up to then in for 1.1 million.

JP1 · Mar 9, 2017

Honest john said:
Openfield if they were not insured hit hard. Gleadell & Nidera but no Frontier or Fengrain.
But Wellgrain at 28K that's not the reason then ?

What were Tesco up to then in for 1.1 million.

Outstanding credit notes?

AlfM · Mar 9, 2017

Openfield were insured.

Barleymow · Mar 9, 2017

Amazing how much they owed to so many

David. · Mar 10, 2017

Interesting how quite a few retailers were owed, credit for returns perhaps, and/or even payments for shelf space perhaps?

Courier · Mar 10, 2017

David. said:
Interesting how quite a few retailers were owed, credit for returns perhaps, and/or even payments for shelf space perhaps?

Morrisons is shown as a Contra for £395k [emoji6]

Lots of Rumours Wellgrain has gone bust?

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