Monday, January 30, 2006


Sanctuary Records has been doing pretty badly of late, ever since it bought Urban Records from Beyonce Knowles' dad - we're not sure, but we believe they found him flogging it in a market, trussed up in a sack, and when they got home they discovered it wasn't a pig at all, but a goat, which has been chewing through their profits ever since.

Anyway, having managed to turn a loss of £26.7million into an even bigger loss of £142.6million over the course of a year, you might expect the team in charge to have a plan, And they do. Boy, do they. It's not - as you might have thought - taking what's left to a boot sale and inviting offers. Nope, they're going to sell shares in the company to allow, erm, everyone to join the downward spiral. Of course, to tempt people to buy shares in a company which has lost over one hundred and fifty million quid in just a couple of years, you'd have to set the price pretty low: so, then, those investors who had held the faith and not offloaded their shares this far will see the value of their holdings plummet futher. The result? Shares have continued to drop in price.

Sanctuary hopes to raise £110million from the share deal; it has an agreement to write off £35million of its debt and its going to close Urban altogether. At the moment, you can buy 100 shares in Sanctuary for about 70pence.


Eyetie said...

It's worse that that, Jim, they're at less than a penny...

"Shares in the group closed 26%, or 0.3 pence, lower at 0.78p"

Oh, and just how did Sanctuary manage to shirk £35m of debt? Debt restructuring is one thing while forgetting about 35 big ones is something else. If we'd known about this little manoeuvre before last summer, we could have been spared Live8.

ian said...

140 million? they could have won the premiership with losses like that.

simon h b said...

Ian - not with Ozzy and Morrissey playing as strikers, they couldn't.

Eyetie... it's nice to think that perhaps Bono cut a deal for them, isn't it? "C'mon, Barclays... write off a few million quid..."

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