New McDonald's deal marks Torex recovery
Monday 14 January 2008
Torex Retail, the scandal-hit retail software developer that nearly imploded last year, has started 2008 with a bang by winning a substantial contract with McDonald's to deploy its new point-of-sale system across 35,000 fast-food outlets.
Torex Retail had a disastrous 2007 after an unexpected profit warning triggered a series of investigations into the company's conduct and accounting policies, most notably by the Serious Fraud Office.
The software company's reputation was tarnished and it faced a grim future until it was bought outby the private equitycompany Cerberus, which later sold a third of thecompany to General Atlantic.
The company's new management team argued that winning the deal with McDonald's – which has used Torex's software for a number of years in 12,000 outlets – was vital to the company's prospects.
Mike Greenough, chairman and chief executive of the company, said: "We have had a lot of bad publicity over the past year, and this kind of positive statement is a tremendous lift. Our customers and employees have been dragged through the mud, so it is important for them to see this kind of commitment from such a significant third party."
Graeme Cooksley, president and chief operating officer of Torex Retail, said that the new management team contacted McDonald's within a day of completing the takeover of the company to reassure them that Torex was financially viable.
Mr Greenough said that the company also had to fight off competition from "anybody who is anybody in this sector" for the deal as its competitors looked to take advantage of its woes.
Torex's new software system, dubbed NewPOS-POS, promises to speed up counter and "drive-thru" service, improve order accuracy and make kitchen production more efficient. McDonald's, which will tailor the software for its own needs, will roll the product out across 84 countries.
Torex, which also supplies software to Tesco and Argos, did not detail the size of the five-year deal, but Mr Greenough described it as "extremely significant".He added that the company is set to announce another substantial contract over the coming weeks.
Mr Greenough said that the company, which was losing £1m a day when it was taken over, is now cash-flow positive and has £36m in cash in the bank.
- 1 Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
- 2 Moscow voted the world's unfriendliest city
- 3 The excuses your boss is most likely to believe when you call in sick
- 4 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 5 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...