McGrathmaggedon himself unleashed a torrent of fake news yesterday at a spruiker event:
“We will be moving forward at a pace not seen before. This business has incredible greatness and resilience,” Mr McGrath said, according to a copy of remarks provided by the company.
“We will be laser-focused, customer-centric, fast, agile and our innovative heritage will once again come to the fore.
”I have more passion and determination than I have ever had.”
In his closing comments to agents, he told the room he was “excited” to be working for the company in his new capacity, and that the efforts of staff had made the transition a positive experience.
“It’s the best few days of my life rather than what could’ve been the worst,” he said, thanking the agents for their support.
…”People have got to like and trust you before they do business with you,” Mr McGrath said.
Is there a more discredited businessman in Australia today? Via the AFR:
Former McGrath franchise king and its third biggest shareholder Shane Smollen has backed John McGrath to revive the company he founded 30 years ago, after shares hit a record low of 50¢ following yet another profit warning and the resignation of the CEO and entire board.
“There’s no reason why John with the right management team can’t turn around McGrath,” Mr Smollen told The Australian Financial Review.
Mr Smollen, who has just returned from a four-week overseas trip, said he planned to speak to John McGrath – who addressed agents at the company’s Kick Start sales conference on Tuesday – later this week to get an idea “where the business is headed”.
…Mr Smollen, who is now in property development, has an 8.7 per cent stake in McGrath ranking him the company’s third biggest shareholder behind listed investment house Perpetual, which has 13.8 per cent and John McGrath who owns 26 per cent.
He was McGrath’s largest franchisee before selling his network of 10 Sydney offices back to McGrath ahead of the IPO for $31.5 million in cash and $21 million in shares, reportedly the highest price paid for a residential real estate business in Australian history.
Well…that’s objective. There is one very good reason why McGrathmaggedon is going to get worse before it gets better. It’s the same reason that he cashed out in the first place. The Sydney (and national) property correction has only just begun.
McGrathmaggedon needs to wait before going private again. He will be able to buy his business back for $1 when this is over.
