I’ll give 100 to 1 odds that what happened to
SP USA won’t happen to SP UK.
SP USA won’t happen to SP UK.
As I’ve stated several times before this on
my blog, the decision to abruptly and totally shut down SP USA was one of the
dumbest decisions, if not THE dumbest decision, that I’ve observed in my 40+
year involvement in the reprographics business and industry.
my blog, the decision to abruptly and totally shut down SP USA was one of the
dumbest decisions, if not THE dumbest decision, that I’ve observed in my 40+
year involvement in the reprographics business and industry.
The reason why I’m writing this blog post
this morning – – – Early this morning, I received an e-mail from
one of SP UK’s current team members.
(My comments will resume below the e-mail):
this morning – – – Early this morning, I received an e-mail from
one of SP UK’s current team members.
(My comments will resume below the e-mail):
Hi Joel,
I just wanted to write you a quick message to say thank you
for your blog.
for your blog.
As an employee of Service Point UK, it is the only source
we have for accurate information on what is currently happening within our
company. The staff are just not being talked to just now –
management and sales staff have all been conference calls but these have been
(IMO) filled with misinformation and rhetoric. The message they’ve to convey to
clients, if asked, is that SPUK is a completely separate entity from SPS Spain
and remains unaffected. The amazing thing is that nobody is asking any
questions – they all just believe what they are told.
we have for accurate information on what is currently happening within our
company. The staff are just not being talked to just now –
management and sales staff have all been conference calls but these have been
(IMO) filled with misinformation and rhetoric. The message they’ve to convey to
clients, if asked, is that SPUK is a completely separate entity from SPS Spain
and remains unaffected. The amazing thing is that nobody is asking any
questions – they all just believe what they are told.
Any staff with a computer can easily find out this
isn’t strictly true. Anyway SP USA had a similar set-up to SP UK and it hasn’t
done them any good! We know that SPUK is owned by GPP (in administration)
which in turn is owned by SPS Spain. We know that the assets of SP UK were offered as guarantees for the
loans taken out by SPS Spain. Whenever we ask anything – we’re told
everything is fine in UK and we are strong.
isn’t strictly true. Anyway SP USA had a similar set-up to SP UK and it hasn’t
done them any good! We know that SPUK is owned by GPP (in administration)
which in turn is owned by SPS Spain. We know that the assets of SP UK were offered as guarantees for the
loans taken out by SPS Spain. Whenever we ask anything – we’re told
everything is fine in UK and we are strong.
We’ve to believe that SPS Spain applying for creditor
protection and shortly after that GPP being put into administration is complete
coincidence. We’ve to believe that GPP being in administration will not
affect us one bit. We’ve also to believe that the sudden and unexpected
redundancies of colleagues that has happened over the last two weeks is
completely unrelated. As is the re-branding to UDO, which has apparently
been the result of extensive market research.
protection and shortly after that GPP being put into administration is complete
coincidence. We’ve to believe that GPP being in administration will not
affect us one bit. We’ve also to believe that the sudden and unexpected
redundancies of colleagues that has happened over the last two weeks is
completely unrelated. As is the re-branding to UDO, which has apparently
been the result of extensive market research.
The way we’ve ‘purchased’ machinery in the past few years
means we don’t actually own them and so don’t have many assets.
means we don’t actually own them and so don’t have many assets.
Anyway, please feel free to correct me on any of the above
– it would be useful to know if our own research was flawed!
– it would be useful to know if our own research was flawed!
Thanks again – I’ve kept most of my details
private as ………. – hope you understand,
private as ………. – hope you understand,
Regards,
SPUK Employee
SP UK will
not be shut down. SP UK is a valuable
asset. Now that SP’s lenders,
apparently, control SP UK, they will (working with the administrator that’s
managing the holding company that controls SP UK) do whatever they can do to
preserve the value of the SP UK asset.
That does not mean that there will not be changes. For it would be rare for lenders to not want
to, at some point, convert to cash assets that have been pledged as collateral
on loans previously made. In other
words, lenders don’t want to own the business, they just want to recover some
(or all) of the money they are owed. The
only way for lenders to maximize the amount of money they will end up with is
to preserve the value of SP UK until the lenders have a plan to realize
(convert to cash) SP UK’s value. And,
I’m speaking of SP UK’s “enterprise” value, it’s value as an ongoing, operating
business. As to possible outcomes (for
lenders to realize value), just a few that come quickly to mind:
not be shut down. SP UK is a valuable
asset. Now that SP’s lenders,
apparently, control SP UK, they will (working with the administrator that’s
managing the holding company that controls SP UK) do whatever they can do to
preserve the value of the SP UK asset.
That does not mean that there will not be changes. For it would be rare for lenders to not want
to, at some point, convert to cash assets that have been pledged as collateral
on loans previously made. In other
words, lenders don’t want to own the business, they just want to recover some
(or all) of the money they are owed. The
only way for lenders to maximize the amount of money they will end up with is
to preserve the value of SP UK until the lenders have a plan to realize
(convert to cash) SP UK’s value. And,
I’m speaking of SP UK’s “enterprise” value, it’s value as an ongoing, operating
business. As to possible outcomes (for
lenders to realize value), just a few that come quickly to mind:
-SP UK could
be sold to one or more buyers who already have interests in the reprographics
business.
be sold to one or more buyers who already have interests in the reprographics
business.
-SP UK could
be sold to one or more buyers who have not heretofore been involved in the reprographics
business, but who are interested in getting involved in the reprographics
business.
be sold to one or more buyers who have not heretofore been involved in the reprographics
business, but who are interested in getting involved in the reprographics
business.
One or more buyers? Well, the operations could be split up and
sold to different buyers. I don’t see that happening, but that can’t be totally
ruled out.
sold to different buyers. I don’t see that happening, but that can’t be totally
ruled out.
-The Lenders
may choose to continue the operation of the SP UK business for more than just
the short term.
may choose to continue the operation of the SP UK business for more than just
the short term.
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The one thing that I’m positive won’t happen
is that SP UK will not be shut down. For
anyone to repeat with SP UK what took place with SP USA would be absolutely ludicrous.
is that SP UK will not be shut down. For
anyone to repeat with SP UK what took place with SP USA would be absolutely ludicrous.
Reprographics 101 
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