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Case Study

Clydesdale Group plc

By Stewart Hamilton, Alicia Micklethwait and Verity Croudace

14 pages

August 1996

Reference: IMD-1-0153

In January 1994, the electrical retailing group, Clydesdale Group plc, appointed receivers to oversee the dissolution of the company. The case study charts the history of Clydesdale through a drastic rationalization in the 1980’s and the subsequent dash for growth. The banks, which financed the expansion (at the start of the recession), finally refused additional cash as Clydesdale’s trading figures worsened, and called in the receivers. The banks did then recover their loans, but trade creditors were left with only 20p to 30p in the pound. This case study asks the question as to whether creditors should have foreseen the collapse, given, in particular, the publicly available Financial Statements (summaries in the exhibits).

Keywords

Insolvency, Expansion, Cash Flow, Electrical Retailing

Settings

United Kingdom
January 1994

Type

Published Sources

Available Languages

English

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