WHYTE AND MACKAY: LOSSES

Published: 23 July, 2008

German bank WestLB is reported to be keen to off-load its 30% stake in troubled whisky group, Whyte and Mackay (formerly Kyndal Spirits Ltd) which recently announced job cuts of around a third of its work force. The news of WestLB's intentions comes just after Whyte and Mackay's CEO, Vivian Imerman, announced a new corporate strategy' designed to increase revenues, market share and profitability for future long-term growth'. It includes a 70 million investment in brand marketing and company restructuring. We have renamed the company in line with the new vision and strategic focus, which will, together with the significant investment, reverse our slowly deteriorating market position,' said Imerman. Around 200 jobs will be lost due to consolidation of Whyte and Mackay's two bottling plants in Leith and Grangemouth, though the company has not yet announced which site will close. If WestLB decides to sell, majority shareholder Imerman has pre-emptive rights to buy the shares. But it is understood that a number of other parties would also be interested. In a statement Imerman said he was disappointed' with WestLB's decision. Kyndal Spirits Ltd had an operating profit of 20.6 million last year from a turnover of 157 million. The company's debts stand at an estimated 2-3 billion.

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