The big crunch day for Countrywide as investors vote on £140m rescue plan

Today is a big day for Countrywide, as its shareholders vote on the £140m rescue plan.

A meeting is scheduled for 10.30am.

Last week, the take-up of new shares – part of the emergency fund-raise – fell short at 73%.

Countrywide also had to can its plan to hand some £20m to its top three executives, depending on its share price over the next three years, after shareholders made known their displeasure at the proposed pay-out.

If today’s shareholders reject the rescue plan – although that does seem highly unlikely – then debt-ridden Countrywide will have to consider selling off what it can, and cease trading.

If – as is expected by its management – the plans are approved, then a three-year ‘back to basics’ turnaround starts from today, and the debt mountain will be reduced from some £205m to about £65m.

On Friday, Countrywide shares finished at just under 15p, according to the London Stock Exchange, with a market capitalisation of £78.5m – a sum that is both less than its debt, and what it is planning to raise.

EYE will update this story as soon as we are able.

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4 Comments

  1. Hillofwad71

    “Back to Basics ” Couldn’t make that one up with little choice having  hocked the family silver

    If in doubt!! try Plan B

    Well we all know how that campaign  ended for a  Conservative  Govt in the 90s  in a response  to  moral panic which became beset by scandals  not least by John Major himself having admitted to a 4 year affair with  Edwina Currie!

    Parodied in Viz by the character Baxter Basics !

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  2. Property Poke In The Eye

    M and S coffee will be swapped with Happy Shopper coffee  🙂

     

    The brand can not be saved with same  board of directors.   They need to replace the whole board of directors.  Then start the back to basics program.

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  3. Sarriea101

    I agree that this brand cannot survive with the current board of directors. Fat cats focussing on their own personal income than looking after the company. A part of me thinks its time to sell it off, break it up and get properly focussed business owners running some of its great name brands. Some of the brands under the umbrella are worth saving, but this no longer works as a whole. Times have changed and we are entering a very different world of Agency. Lettings is going though the largest shake up in the history f the PRS for  almost 3 decades, and not for the better. This is time for “Belts, braces and big pants” not for propping up something that is failing. The debt will never be repaid.

    The high street needs to return to “good old fashioned” service standards delivered by knowledgeable, motivated Property professionals that are enhanced by smart technology. Technology alone will fail, this is a face to face customer services business. Historically attracting used cars salesmen and low educated individuals. The tide has been showing signs of turning for almost a decade, and now we have a tsunami about to crash in. Its not the time to prop up a failing business with throwing more cash at it. Back to basics (Whatever that really means) – sorry Countrywide, but time for that ship sailed a decade ago.

     

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  4. letsallcalmdown73

    Countrywide is close to my heart however this seems like a business that cannot survive. How many directors/’bored’ members had the gall to throw Alison Platt under the bus! Yet they have continued to squander the business, and weren’t they all there agreeing to her plans in the first place! i am not saying she was right i am saying they are ALL wrong. ‘they don’t believe in digital’ have they still not woken up and smelt the coffee coming from the nespresso pot! Even if they secure the funding i feel that this is just going to elongate the journey to the ultimate end of CW, this is such a sad state of affairs. Maybe if they throw the towel in now they can throw a life vest to many of its staff by being brought out by businesses who can actually run estate agency.

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