IT was reported in the media that Guyana Stores is on the verge on bankruptcy owing to lack of management as implied in the recently published company reports. Such lack of management involves the payment of hundreds of millions of dollars from the business for the benefit of a few shareholders; having one supplier for almost all the goods purchased; borrowing money at 19.5 per cent when such loans could be had both locally and abroad at a much lower rate, and so on. Owing to this scenario, thousands of ordinary folk who are small shareholders or are NIS contributors could lose their investment while a few shareholders will not suffer in the same way.But all is not lost. The business could quickly bounce back into profitability and sustained prosperity if the majority shareholders could do the following:-

(1) Employ an expert in retail trade to reorganise the business just as Fogarty’s did when it was first purchased from the O’Dowd family. The American expert was able to revolutionise Fogarty’s which remained the leading store in Guyana for many years until it began to be neglected.
(2) Employ a proper accountant and auditor who could stablise the company’s finances and institute strict financial discipline.
(3) Call an annual general meeting of shareholders in 2014.
(4) The few majority shareholders who are alleged in the company reports to have had reimbursements of hundreds of millions of dollars should inject some of that money in equity.
(5) Settle all outstanding matters with officialdom such as submitting company returns, the payment of Income taxes and payment of remaining purchase price of GSL. Owners will be able to work out manageable settlements once there is the will to succeed.
(6) A serious campaign should be run to win back old customers and recapture the confidence and respect GSL used to enjoy nationwide.
(7) A concerted effort must be made from now to take advantage of the extra business generated by the Xmas holiday season.
I would importune the majority of shareholders not to trust any longer to administrative and legal delays or even political influence to give them respite or solve accumulating problems. The ball game has changed and if there is no quick positive movement then public bankruptcy, massive losses and severe repercussions in New York as well as in other places of business will be inevitable.
Success is within your grasp; don’t let it escape!

B. WALKER