Page 320 - James Caan - The Real Deal
P. 320
The Real Deal
a day, I can do so much from home or wherever else I happen to
be. And that means when I’m in the office the important thing is
spending time with the team, maintaining the rapport and the
spirit of the place so that we continue to excel. Paperwork and
meetings can be done remotely, and that means I get to enjoy being
in the Hamilton Bradshaw offices and hanging out with the team.
So far, only one of our investments has lost money, and that was
a pretty high-profile flop. We got a phone call from a firm of
accountants that was handling the administration of Benjy’s, a
high-street sandwich retailer. If Pret A Manger and Eat cater for
the sandwich connoisseur, Benjy’s was for the bloke who wants a
cheap sandwich at lunchtime and doesn’t want his taste buds
educated – cheese and pickle, ham and tomato, BLT. It had
originally been set up by the Benjamin family and they had
sold up to another private equity firm three years earlier for
£25 million. At the time of the sale it had annual profits of £2.8
million; three years later it was making an annual loss of £4
million.
‘They’re going to run out of cash on Friday,’ the accountants
told us. It was now Monday. If they couldn’t find an investor, the
company would be wound up and its entire workforce laid off.
‘Would you be interested in buying it?’
It sounded like an interesting investment. It was a well-known
brand, it had good locations, and, because I knew there wouldn’t
be many other people who could raise the cash in a week, I could
also get it for a good price. So I went to meet the management
team that the private equity firm had installed, and within ten
minutes I thought I had spotted the problem. The MD wore an
Armani suit and looked as if he’d had an expensive education. He
gave me a very polished presentation on the business and, as I was
sitting there, I couldn’t help but notice the divide between the
management’s style and the brand. The two didn’t marry. He
should have been running Pret, because ideally there should be
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