SFI troubles "apparent" last year

ThePublican.com has learned that troubled SFI Group gave candidates for the vacant chief executive's position clear indications about cash-flow concerns when recruiting last year.

Before appointing Andrew Latham (pictured)​, the company interviewed a number potential replacements for outgoing boss Tony Hill. The short-term challenges a new boss would face with regard to its financial position were made clear.

"It was apparent from the conversations I had that there were real problems," said one candidate who asked not to be named. "Tony Hill was very keen to step aside all of a sudden."

The candidate, who was approached by headhunters acting on behalf of SFI, said he could not establish why the company pressed ahead with the Parisa deal. "I asked why they [SFI] had paid so much goodwill for sites that would then be converted to other brands," he said.

"The answer that came back was the need to keep growing quickly.

"You got the sense that if they didn't keep growing the figures would go badly wrong. I think they were desperate to do something about it."

Shortly after appointing Mr Latham, SFI's financial position deteriorated. Aggressive expansion saw it run out of money, accounts discovered a £20m black hole and the current trading climate led the company to issue a profits warning.

Meanwhile rumours were last week circulating the pub industry that Christie & Co, the property agent that specialises in the licensed trade, has been instructed to value and sell some SFI assets.

Before Christmas, it was rumoured that the company was preparing to sell the entire Bar Med brand, with bids of £30m expected.

Related articles:​

SFI lives to fight another day (7 January 2003)

SFI Group considers Bar Med sale (9 December 2002)

SFI bosses warned of cash flow crisis over a year ago (2 December 2002)

SFI 'ignored crisis warning' (25 November 2002)

SFI investors look to Hill for answers (19 November 2002)

Andrews: '£20m hole due to aggressive and lazy accounting' (13 November 2002)

SFI's Tony Hill leaves with nothing (13 November 2002)

Shares in SFI suspended (12 November 2002)