Is the denouement of James Crean in the pipeline? Judging by the new service contract that Matt Kwasek - the American director in charge of Crean's food business - has agreed, there is an indication that the food division may be sold and Crean finally wound up.
Kwasek was paid an "inducement fee" of $330,000 (€347,405) in February simply to agree to a new service contract which, inter alia, provided for a severance payment of two years' salary (almost $600,000) if the food division were sold and he lost his job with the new owner within 12 months.
Maybe such severance clauses are part and parcel of service contracts in the US, but as far as this reporter is concerned, it sends a signal that Crean's sole remaining businesses are destined for sale, with Matt Kwasek apparently making sure that his interests are safeguarded.
Crean shareholders, if there are any left who still have interest in a company whose shares have fallen from a high of €3.94 six years ago to less than €0.30 this week, can assemble on July 28th to question Ray McLoughlin about what's going on.
Mind you, Ray is at least sharing the pain. Remember he bought a million Crean shares a year ago at €1.10 each. Now those Crean shares (which include the demerged Oakhill as well as the remnants of Crean) are worth the grand total of €0.61 each. That leaves Ray nursing a £385,906 loss on his investment. Still when you earn £200,000 a year...
