I write with reference to Random (DW 12 February).
During 1998, Random Group supported Random Product Design through a long period of mounting losses. A management buyout was suggested in November 1998 and Random Group agreed to sustain further losses while the offer was put in place.
The offer, by three of the directors (not nine of the staff), arrived ten days behind schedule in January. It was found wholly inadequate, not even addressing current losses. Random Group agreed to an extension so that the offer could be improved, but no improvement was forthcoming and support was discontinued.
The board of Random Product Design placed the group in receivership and the staff were made redundant. It should be noted that this was caused by a failure of management and does not reflect adversely on the high capabilities of the staff.
Random Group did not “fear that the BT contract would stay with the MBO”, but fully expected, BT willing, that it would do so.
Any allegation of conflict over design issues between Random Group companies is false. Random Product Design and Random Technologies did not work in overlapping areas. RPD designed telephones. RTL designs safety and medical equipment and other high performance products.
The other companies in Random Group continue to trade successfully.