Posts Tagged ‘Marchant’

  • Andrew Price worries PaperlinX will go broke this year

    Shrugging off his recent defeat in an attempt to unseat Harry Boon as chairman of the paper merchant, Andrew Price is scornful of Toby Marchant’s promise to return the company to profitability by 2014.

    In a return to the guerrilla campaign he is waging against the board, Price describes the CEO’s plan as nothing more than a sham designed to buy time from the shareholders and avoid accountability. Price claims that Marchant is unable to forecast the sales and profit situation within the timeframe.

    “How can you credibly say that a reduction in overhead will restore profitability by 2014 when you admit that you have no idea what the sales and gross profit will be for the same year,” said Price in a press release.

    “At the EGM I pressed the Chairman to at least provide earnings guidance for 2012 and he refused. Trying to get the Boon/Marchant team to commit to foreseeable targets is like trying to nail jelly to a wall,” said Price. “I couldn’t care less about pie in the sky promises for 2014. I am worried about 2012 and the possibility of insolvency this year.

    The renewed criticism comes after members of the board, including Marchant increased their personal shareholdings in the company. This was a bone of contention at the recent EGM where Price accused the members of not backing their own company.

    There is no doubt the Price campaign is a continuing distraction for the company, which today announced a restructuring of its brands, rallying behind the name Spicers to better project a strong identity.

    Price has said he will not challenge Harry Boon again for the chairmanship of the company, but it appears that does not limit him from delivering trenchant criticism and dire warnings.

     NEXT WEEK! Don’t miss an Exclusive Feature here as Toby Marchant talks to Print21 on the challenge to the board posed by Andrew Price, the corporate strategy he believes will turn around the company and the future of the paper and printing industry.