Vaux job losses loom as brewery buyout talks fail
Wednesday 24 March 1999
Swallow, known as Vaux Group until a month ago, briefed staff at its landmark brewery in Sunderland to warn them of redundancies after non- executive directors vetoed the buyout.
Peter Catesby, chief executive, said the talks had finally collapsed over a supply agreement which, according to observers, would have forced Swallow to subsidise the buyout team by committing itself to a three- year supply deal.
"The real issue was the difference in value between the alternatives and the management buyout," he said. "The buy-out had to its benefit the fact that all the jobs would have been saved."
The collapse of talks followed initial questions in the City over the value to shareholders of the pounds 68m price tag for the MBO, which would have included 350 Swallow pubs and the two breweries.
The buyout was led by Frank Nicholson, a member of the family which has controlled Vaux for more than 120 years. Sir Paul Nicholson, current chairman of Swallow, is Frank's brother.
Martin Grant and Neil Gossage were dismissed as chief executive and finance director of the group last month after they raised concerns about the MBO proposal behind the board's back with leading shareholders. One shareholder said their position had been vindicated by yesterday's developments.
Swallow intends to resume discussions with other interested parties in its efforts to sell the brewery.
- 1 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 2 Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
- 3 Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
Woman opens professional cuddling shop – gets 10,000 customers in first week
Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Rochester aftermath: Sacking of Emily Thornberry will make work of Labour MPs '10 times harder'
Revealed: How the world gets rich – from privatising British public services
iJobs Money & Business
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...