Management Buyout
The Government made several attempts to privatise Red Star Parcels. The British Railways Board attempted to sell it in June 1993, attracting seven bids. Only two were considered to be serious; and in November 1993 the board recommended that the sale be abandoned. In 1993-94, John MacGregor, Secretary of State for Transport, attempted unsuccessfully to sell it off. On 5 September 1995 it was sold to a management buyout, for a peppercorn rent; the cost of the sale was recorded as £0.3 million. Privatisation of the network led to the creation of a number of private passenger train companies and the loss of a national network heralded the start of the demise of Red Star.
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Famous quotes containing the word management:
“Why not draft executive and management brains to prepare and produce the equipment the $21-a-month draftee must use and forget this dollar-a-year tommyrot? Would we send an army into the field under a dollar-a-year General who had to be home Mondays, Wednesdays and Fridays?”
—Lyndon Baines Johnson (1908–1973)