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Does everyone lose their jobs if a holding company goes tits up? Ref the Quindell 4,000

Tom Winnifrith
Sunday 28 September 2014

I see that various Bulletin Board Morons accuse me of threatening 4,000 jobs at Quindell (QPP). Just for them, I offer a basic lesson in markets and economics.

For starters Quindell will not go tits up or prosper and join the FTSE 100 (ho, ho, ho) because of what I or anyone else writes. In the long run if it generates the cash that its lackey retained analysts at Cenkos and Canaccord predict it will prosper. Of course it will not and that is why it is doomed. Ultimately it is not about press comment but about cash generation or, in Quenron’s case, lack of it.

I do not wish unemployment on anyone and the vast majority of jobs will in Quindell’s case not be lost. If the Holding company – that is Quenron PLC – goes bust then head office staff in finance, the board, HR , etc. will lose their jobs. You are talking dozens of folk here.  The administrator will then attempt to sell the individual business units. There are c 54 subsidiaries.

Now 

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About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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