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The Bookseller has a sort of interview with Mark Brewer. Yet again he speaks with forked tongue. The full article is here http://www.thebookseller.com/news/65905-b
Firstly Mark Brewer states that "abysmal" Christmas sales last year meant that "by late spring, the chain was plainly insolvent". What Mark Brewer fails to say is that the replacement companies for SSG Ltd were started before late Spring so the signs were already there. Also a large part of the abysmal sales were tied to the fact that the shops had no stock to sell as they could not any order due to unpaid bills - that it was the Brewer's financial mismanagement that led to the problem.
As to the issue of making SSG Ltd in the US, we have to remember that the Brewers, BP Law and the people doing the accounts are based in the US. Therefore "This made bankruptcy in the US a viable alternative to a UK insolvency, and given the dollar-pound exchange rate, US bankruptcy was dramatically less expensive," he said. "Candidly, the charity simply did not have the funds to institute an insolvency proceeding in England."
In June, the trustee for the Chapter 7 liquidation, Randy W Williams filed a motion to dismiss the case. He said, "On its face, there is nothing to liquidate and nothing available to fund an investigation in the UK". Brewer admitted that "due to the relatively small number of assets, the trustee did not feel that liquidation was worth his while." Actually reading the motion to dismiss the Trustee (Mr Randy Williams) had doubtsabout the legality of the bankruptcy case and asked for it to be kicked out because it was illegal NOT because it was not worth his while. This case has since been dismissed - SSG is not bankrupt and can not be made bankrupt in the US.
Mark Brewer said that he "unintentionally" alienated staff with a new buying policy, which included a discontinuation of selling the Koran and an increase in the number of Orthodox materials sold. "[Staff] actively worked to prevent implementation of anything to do with change until the chain's finances were too far gone for any change to have worked," he said. What Mark Brewer does not say is that his new buying policy contravened the agreement with SPCK when SSG took over the bookshops. Staff did not actively work to prevent implementation of anything. We did not have to. many of the contract changes were illegal, and the book buying was a mess because it was removed piecemeal from the managers, given to a senior manager who was unable to do anything because of unpaid bills. Also soaps, lotions and icons were sent over to shops from the States, with ridiculous selling prices, and the shops left to foot the vat bill which often ran into 3 figures. Staff bent over backwardsto try and save the shops, but because of mismanagement by the Brewers this could not happen.
Firstly Mark Brewer states that "abysmal" Christmas sales last year meant that "by late spring, the chain was plainly insolvent". What Mark Brewer fails to say is that the replacement companies for SSG Ltd were started before late Spring so the signs were already there. Also a large part of the abysmal sales were tied to the fact that the shops had no stock to sell as they could not any order due to unpaid bills - that it was the Brewer's financial mismanagement that led to the problem.
As to the issue of making SSG Ltd in the US, we have to remember that the Brewers, BP Law and the people doing the accounts are based in the US. Therefore "This made bankruptcy in the US a viable alternative to a UK insolvency, and given the dollar-pound exchange rate, US bankruptcy was dramatically less expensive," he said. "Candidly, the charity simply did not have the funds to institute an insolvency proceeding in England."
In June, the trustee for the Chapter 7 liquidation, Randy W Williams filed a motion to dismiss the case. He said, "On its face, there is nothing to liquidate and nothing available to fund an investigation in the UK". Brewer admitted that "due to the relatively small number of assets, the trustee did not feel that liquidation was worth his while." Actually reading the motion to dismiss the Trustee (Mr Randy Williams) had doubtsabout the legality of the bankruptcy case and asked for it to be kicked out because it was illegal NOT because it was not worth his while. This case has since been dismissed - SSG is not bankrupt and can not be made bankrupt in the US.
Mark Brewer said that he "unintentionally" alienated staff with a new buying policy, which included a discontinuation of selling the Koran and an increase in the number of Orthodox materials sold. "[Staff] actively worked to prevent implementation of anything to do with change until the chain's finances were too far gone for any change to have worked," he said. What Mark Brewer does not say is that his new buying policy contravened the agreement with SPCK when SSG took over the bookshops. Staff did not actively work to prevent implementation of anything. We did not have to. many of the contract changes were illegal, and the book buying was a mess because it was removed piecemeal from the managers, given to a senior manager who was unable to do anything because of unpaid bills. Also soaps, lotions and icons were sent over to shops from the States, with ridiculous selling prices, and the shops left to foot the vat bill which often ran into 3 figures. Staff bent over backwardsto try and save the shops, but because of mismanagement by the Brewers this could not happen.
"I certainly share fault for this, mainly because I failed to muster the necessary support of the senior staff." No Mark - you are at fault because you did not treat the staff at SPCK as human beings, you treated them like slaves and were unable to cope when you discovered they had a mind of their own.
- Mood:
aggravated
