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Monday, January 05, 2009

Waterford Wedgewood Collapses

The "real" economy is now feeling some very "real" pain from the banking crisis. It was announced today that Waterford Wedgewood will be placed into administration, thus threatening 1,900 jobs in the UK.

Waterford Wedgwood missed a January 2 deadline to meet loan repayments. Its net debts are around Euro449M, and it had been unable to raise Euro150M of new equity.

The company had been making losses for the last six years.

As ever, it will be the fundamentals that determine which companies survive this recession (now that the era of "easy" money has ended); ie profits and cash flow.

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