Gerald Ratner still reeling 30 years on from gaffe


Gerald Ratner still reeling 30 years on from gaffe that sank his jewellery empire in a matter of seconds

It was one of the most infamous speeches in corporate history. 

On April 23, 1991, Gerald Ratner stood up in front of 6,000 of the great and good and sank his jewellery empire in a matter of seconds. 

‘We do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95,’ he told the Institute of Directors event.

Gaffe: Gerald Ratner stood up in front of 6,000 of the great and good and sank his jewellery empire in a matter of seconds

Gaffe: Gerald Ratner stood up in front of 6,000 of the great and good and sank his jewellery empire in a matter of seconds

‘People say: ‘How can you sell this for such a low price?’ I say: ‘Because it’s total crap.’ 

He added: ‘We sold a pair of earrings for under £1, which is cheaper than a shrimp sandwich from Marks and Spencer, but probably wouldn’t last as long.’ It became known as ‘doing a Ratner’ and still serves as a warning for top chief executives to this day. 

Ratner inherited the business from his father and built it into multi-billion-pound empire, with 2,500 stores. But after the speech the share price tanked. The group was forced into a financial restructuring and Ratner resigned in 1992. It still rankles. Taking to Twitter yesterday to mark the anniversary, he said: ‘It is 30 years today when I made ‘that’ speech. It seems like yesterday. I wish it was tomorrow. I would cancel it.’ 

Speaking to the Mail, he added: ‘It’s not water under the bridge. It’s something I’ve been living with for the last 30 years. It’s like a scar on your face.’   

WHAT HE SAID 

”People say: ‘How can you sell this for such a low price?’ I say: ‘Because it’s total crap’ 

………………………………………………………………………………………………………………… 

We sold a pair of earrings for under a pound, which is cheaper than a shrimp sandwich from M&S, but probably wouldn’t last as long ‘”



Source link

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What do you think?

Franco Manca owner reports stonking sales

How to Reserve a Campsite, Even at the Last Minute