My best wishes to Jason, Nick, Sue,James,Habib and the many other good employees from my days at Labour Ready UK.
The $46 million loss in the last quarter at TBI is very disappointing as a strong follower of this stock where a share price of just $6 was supported through to some $28 with Strong Buy recommendations on this board. This stock was supported despite my strong reservations of the UK unit that was clearly in need of strong management and specifically strong Directors like Jason,Nick and I. We who would have gained magnificent support from James, Sue and Habib and many others in this grouping too. So it did not really surprise me too much when the UK outfit was discarded to Fortis after many years of poor UK performances where clearly poor UK Senior Managers individuals like Craig Slater and Justin Grundy had made very bad judgements, misbehaved and ultimately made significant losses that undermined profitability to such an extent that the whole UK arm had to be sold off. How sad it must be for Fortis too with its Chief at the helm, David Mogford now having to restate and reinvent a UK company that has so many questionable foundations and not least in retaining the ten year UK employee Justin Grundy at the UK operations. Currently I am awaiting the excellent performances in similar UK recruiters for 2008 that will highlight again how badly managed Labor Ready UK has been and these will be sensibly be published here but the estimated $1 million to $2 million loss at the UK in the last quarter has some serious smell about it and it is as worse than that of previous poor employees carrying BO like Slater’s Wilkinson and his band of misfits.
Well done to Mr Cooper though for taking such positive and strong action in removing a clear loss maker as Labour Ready UK.
I’ll be in touch soon again.
Dinesh R Makwana Email:email@example.com Inorbits Recruiters and Head Hunters
I’d like to start by saying hello to ‘therealrvp’ and hope you’re well.
How accurate your opening post is in reflecting on factual past events within the realms of Labour Ready UK. I’m certainly looking forward to seeing the results of your research in presenting comparisons of other companies within the recruitment industry as a whole. Your previous history on the past LRW message board along with your support, and support that was given, demonstrates how thorough you are in collating and presenting accurate information, your web site alone authenticates that point. I remember it had a positive impact on the share price at that time as shown in your initial post.
As a previous employee also, it is very sad to see how LRUK, that had enormous potential, has been steered catastrophically into the rocks and subsequently finds itself in the shambolic state it is in. I always believed, and still do, that the Labour Ready business model was completely right for the UK even if others ( perhaps competitors ) would have considered it to be unorthodox. If sold correctly, customers would rarely raise objections as they were covered, closed and price negotiation would be the only outstanding factor usually.
That said, what really made LRUK a practical alternative was that it had a model structure that was unique from a customer expectation standpoint. Customers, usually, were in fact very impressed. That is, however, until things started to go wrong on a huge scale, namely the leadership at that time along with the direction it was taken in.
I’ve always known from experience and information I collated, largely, what those reasons were but mainly because of length and detail, I will not be able to share my complete breakdown of this on this particular post. However, what I can do is share the basic framework and a chain of events that brings LRUK to where it is today.
An opening question would be this. If one had acquired or taken over a company that has history, as in the case of LRUK, would one want to know what the specific information of that history was? I’m sure observers will agree it’s a big question but I can assure you it is nothing compared to the answer in terms of size.
There are mainly three individuals, from an upper tier Director / Management standpoint who, in my opinion, are totally responsible right up to the present day. There are others in fact that played their part also to a lesser extent and may be mentioned at a later post. The three people in question here and responsible, in my opinion amongst others, are Jeff Norris, Craig Slater and Justin Grundy. Both Craig Slater and Justin Grundy were ‘brothers in law’ during Slater’s time with LRUK and the ‘nepotism’ argument on this point alone will be explored along with the fact that they were both, before joining LRUK, Market Traders only their commodity were ‘toilet rolls’ that were indeed sold from a common market stall. Incidentally, Slater sent out a company wide e-mail ( when appointed the ADO role ) which was approved by Jeff Norris ( ex RVP ) in which he claimed he was a successful Managing Director of a previous company which was shown to be a complete untruth, as exposed at a later time and this only added to the many reasons for his removal, some of which are disturbing from a business standpoint.
To be fair though, these were roles in which they could hold genuine claim to a Directorship as far as ‘Market Traders’ are concerned. All evidence and knowledge about Slater was deliberately concealed by Justin Grundy.
On my next post we’ll explore more as to the reasons of Grundy’s concealment regardless of the fact that he was approached to bring forward these concerns, however, Grundy refused as he had his own agenda and that will be the subject, amongst others, that we’ll explore.