A great Institution Lost
I was really saddened to learn about the demise of Mortons Rolls, the iconic Glasgow baker, a company with a great reputation which had been going since 1965. My first thoughts are for the 200 odd souls that have lost their jobs; truly heart-breaking at this economically bad time.
But how did such an excellent company hit the skids, and be forced to close its doors?
Now I am not privy to their finances, Director’s actions, or their pricing matrix, however it can’t be ignored that their relationship with the multiples may have cost them.
Morton’s signed a six figure deal not so long ago and invested heavily in new lines, the huge rise in costs of raw materials and energy this past year may have been just too much for them, selling masses of high quality products at greatly reduced margins that wasn’t covering their operational outlay, and with the cost of the technical requirements that you need to deal with large retailers, that all combined tipped them over the edge.
Whatever it was that brought them to the abyss, we are now another company down from where we can get decent food products from.
Less suppliers, less choice, which will only get worse from now on in all industries