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6:21pm Friday 26th March 2010 in
SCORES of workers at an office water cooler company are facing the axe after administrators “mothballed” their company.
Powwow, which has its headquarters on the Oxford Business Park, Cowley, was taken into administration by financial recovery firm Deloitte on yesterday.
About 50 staff were told the bad news after turning up for work this morning.
Rather than keeping it operating as a going concern, joint administrators John Reid and Brian Milne decided to shut it down immediately.
Mr Reid said: “The company has been suffering severe cash flow problems.
“We intend to mothball the business while seeking a purchaser for the business and assets.
“Unfortunately the majority of the staff will be made redundant while we consider the options for the business.”
The company has nine distribution centres across the UK and two production sites at Chesham and in the West Midlands.
It has about 50,000 customers nationally and employs a total of 360 staff. Powwow, set up in 2003, was originally owned by food giant Nestle.
In February 2009 it was bought out by a new firm, the Lomond Hills Water Company.
Comments(7)
Headington-Heathcliff
says...
11:14pm Fri 26 Mar 10
ex-powwow
says...
5:07am Sat 27 Mar 10
Andrew:Oxford
says...
1:12pm Sat 27 Mar 10
ex-powwow wrote:Best to speak to Deloitte if you believe that there is a problem. If the debt collectors are "hounding" using incorrect data, then that data could only have come from the sales and accounts ledger of Powwow... Which does suggest serious short comings of the staff in that department.
Was it deliberate?
Powwow Water Company is now in administration, owing millions to it's suppliers and leaving it's employees out of work. However, there is evidence that this may have been a deliberate ploy by company owner Jim Park.
- Owner Jim Park has a reputation for making money out of companies by running them into the ground and having their debt written off, while leaving suppliers out of pocket and employees out of a job
- When Jim Park bought the company from Nestlé last year it was already failing but had £10million of debt owed to it
- That debt has been sold off to Murray White debt collection agency for £800,000. They will now hound customers (often incorrectly due to bad data) in order to collect the money. Murray White is also owned by Jim Park.
- That £800,000 by law has to be paid to Powwow's suppliers and employees.
But where is that money?
Who investigates and serves justice?
and how do we stop this from happening again?
ex-powwow
says...
4:25pm Sat 27 Mar 10
LolaLee
says...
8:50pm Sat 27 Mar 10
ex-powwow wrote:The staff were all good people, I was one of them, and every single one of us wanted to work hard, do a good job and get the company out of the gutter. There were just too many obstacles up in our way and the goalposts moved too many times. We never knew from one day to the next what we were going to be doing.
Andrew:Oxford wrote: "incorrect data ... could only have come from the sales and accounts ledger of Powwow... Which does suggest serious short comings of the staff " The incorrect data was a result of a bad computer system transfer a few years ago from which the company never recovered- the staff were good people in a bad situation. Lots more on a well publicised blog here: www.ht2.org/ben/?p=1 7
The Water Delivery Company
says...
1:11pm Wed 31 Mar 10
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pater mcvey says...
6:39pm Fri 26 Mar 10