I just read that Waterford Wedgwood, who have been making porcelain and china for 250 years, are going bust?
I just find it incredible how many companies are going down the toilet, it makes me wonder how these business have stayed afloat for so long when they can all collapse so soon into an economic downturn.
When you have been selling a product for 250 years, you have pretty much determined that there is a demand for it, so what decisions have been made in, say the last three years, to put Wedgwood skirting on the brink and finally tumbling?
As a layman, the only think I can think of is the reliance on cheap debt and that if things looked troublesome, the company could always get its hands on some money relatively cheaply but as the cheapness of that money was removed from the equation (or even the availability of that money) then the company could not continue.
But can it be true that companies have been run like this for years, and if it is, how many are still dancing along the edge of the cliff?




