The UK has always punched above its weight historically in terms of its business and industrial prowess. But we can also make some extraordinary goofs as well. Here are a few.
Gerald Ratner and jewellery that was cheaper than an M&S prawn sandwich
Some people can do everything right and need only one mistake to bring everything down. Take Gerald Ratner – he destroyed his entire jewellery empire in 1991 with one speech. In only a few short years, Gerald Ratner had made The Ratners Group into one of the most valuable and fastest growing companies in the UK, with a peak valuation in 1990 of £840 million. Only one year later, standing in front of the Institute of Directors, he called his own products “total crap” and joked that his earrings were “cheaper than an M&S prawn sandwich but probably wouldn’t last as long”, presumably in a misguided attempt at self deprecation. The next day, his company lost £500 million in value. Just like that. The gaffe was so infamous that “doing a Ratner” is still common parlance for a grievous foot in mouth moment. Soon after, The Ratners Group almost collapsed (surviving as the Signet Group). You can watch the toe curling video below, where Gerald destroys half a billion pounds of value in just a couple of minutes:
Marks and Spencer try to crack America
Marks & Spencer tried to crack America in the 1980s. They waltzed in thinking everyone would love their very British ways. They didn’t. Americans found the sizes confusing, hated the British style clothing, and couldn’t understand why a store would sell both underwear and sandwiches. M&S lost nearly $1 billion before admitting defeat.
Royal Bank of Scotland and Fred the Shred
Speaking of absolute disasters, remember when RBS bought ABN AMRO in 2007? They paid £49 billion right before the financial crisis hit. Oops. They didn’t check the books properly and ended up buying a bank stuffed full of toxic assets. The British government had to step in with the biggest bank bailout in history. The CEO still got his pension though, so that’s nice.
Hoover and free flights to America
Hoover made a mind-boggling decision in 1992. They offered free flights to America for anyone spending £100 on their products. The flights were worth way more than the vacuum cleaners. People bought vacuums they didn’t need just to get the tickets. Hoover lost £50 million and their entire European division got sold off. Marketing genius!
Northern Rock collapse
Remember Northern Rock? In 2007 they thought they’d found a brilliant new way to make money – borrowing short-term cash to fund long-term mortgages. When the credit crunch hit, everything fell apart. People queued for blocks to pull their money out. It became the first British bank run in 150 years. The government nationalised it, and taxpayers picked up the bill.
Tesco tries to crack America
Let’s talk about Tesco’s American dream. Fresh & Easy was supposed to revolutionize American shopping. They spent billions setting up stores that Americans just didn’t want to visit. The self-checkouts confused people, the portions were too small, and Americans found the stores cold and clinical. After losing £2 billion, Tesco gave up in 2013.
Cadbury makes their chocolate cheaper (and everyone hates it)
The British chocolate company Cadbury tried to be clever in 2009. They changed the recipe of their Creme Eggs from dairy milk chocolate to a cheaper alternative. People noticed. They really noticed. Sales dropped by £6 million in just a few months. When Kraft (now Mondelez) bought Cadbury, they stuck with the cheaper recipe. People still complain about it.
British Airways terminal 5 launch
British Airways had a complete nightmare in 2008 when they opened Terminal 5 at Heathrow. They’d spent £4.3 billion on it, but on opening day the baggage system collapsed. They cancelled 500 flights and lost 23,000 bags. The chaos lasted for weeks. But hey, at least the building looked nice.
HMV thought mp3s were a fad
Bonkers decisions? How about when HMV ignored online music in the 2000s. Their CEO said digital downloads were just a fad. Amazon and iTunes ate their lunch. They went from 400 stores to virtually nothing. They still exist (via various rescues), and have even regained their flagship store on Oxford Street, but they’re a shadow of their former selves.
Companies House killed a business with a typo (and got sued for it)
The prize for most expensive typo goes to Companies House. In 2009, they accidentally listed Taylor & Sons Ltd as going into administration instead of Taylor & Son Ltd. The extra ‘s’ killed the wrong company. The 124-year-old business lost all its contracts overnight. They sued Companies House and won £9 million in damages.
Barclays and the LIBOR scandal
Barclays tried to be smart in 2012. They figured they could manipulate LIBOR rates (the rates banks use to lend to each other) to make more money. They got caught. The fine? £290 million. Their CEO lost his job, their reputation got trashed, and they’re still dealing with the fallout.
British Leyland and the Austin Allegro
Remember when British Leyland thought they could take on the Germans in the car market? They made the Austin Allegro – a car so badly designed that its square steering wheel would sometimes fall off. The windows would pop out if you jacked up the car. They managed to make a car that literally broke itself.
The death of Thomas Cook
More recently, Thomas Cook collapsed in 2019 after 178 years in business. They needed £200 million to survive but couldn’t get it. They stranded 150,000 holidaymakers abroad and lost 21,000 jobs. They’d stuck to the same old package holiday model while the world switched to booking flights and hotels online.
Pick ‘n’ mix couldn’t save Woolworths
And who could forget Woolworths? They watched as pound shops took their cheap items market, supermarkets took their pick ‘n’ mix, and Amazon took everything else. They just kept doing the same thing until they went bust in 2008. Nine decades of British retail history gone because they couldn’t work out what they were supposed to be selling. Occasionally, rumours surface that Woolworths will return to the high street, though these are always some joker pranking a nostalgic (and somewhat gullible) public.