Update 28/03/2023

[KnowItAll]

Legally, since IDS is the parent company, RMG becoming insolvent will not affect IDS. The shares are in IDS, and currently RMG are thought to contribute a negative value to IDS valuation. Effectively, RMG going into administration would likely increase the valuation of IDS because GLS alone is worth considerably more than the IDS share price.

[jbo5066]

But didn't RM buy GLS? Would that have any bearing on any future proceedings?

[stan_lers]

The company was privatised as RMG. Obviously you can't say that Royal Mail are making huge losses or has to go into administration because then GLS and Parcelforce go with it, but you can rebrand as IDS and say that the RM part in particular is failing. That was the whole point of the renaming and has been what the board has wanted since day one - no USO, just an agency parcel business.

If the company fails, then it was sold as one entity, it should be taken back into public ownership as one entity. It probably wouldn't, because Tories, but it should.

And I get that people are frustrated with the union but I don't know what they expect. The board wants RM off their books. They've built a 1bn hub only to complain about a 400m loss, while also paying out bonuses and dividends. They are lying and gaslighting the entire workforce and it sounds like some of you believe it. I believe the union can still get us a deal but they're dealing with a management that wants RM off their hands and knows that worst (or best) case scenario, the government picks it up with zero loss to themselves.

[Kenfandango]

Swinging the conversation back a few pages to the whole "how will they get 25 minutes less prep time" thing... I imagine they'll want the mail all sequenced and the packets at least in buddy sleeves, which will cut off a lot of faffing about (there's always rumours of "walks arriving pre bundled" but unless the machines get better at sorting that will take more time)

[Eduardo]

But didn't RM buy GLS? Would that have any bearing on any future proceedings?

If this is true (is it really true?) Then this is the grift.
Use royal mail to fund acquisitions then when there's no more wealth left in royal mail shove the dead carcass back on the tax payer.
The best thing is publicity, this fact alone should be sung from the rooftops.

[Kenfandango]

But didn't RM buy GLS? Would that have any bearing on any future proceedings?

If this is true (is it really true?) Then this is the grift.
Use royal mail to fund acquisitions then when there's no more wealth left in royal mail shove the dead carcass back on the tax payer.
The best thing is publicity, this fact alone should be sung from the rooftops.

No RM bought GLS in 1999, so a good while before the big grift began

[P13]

Ok can someone tell me how GLS can escape the administrators ?

from what i have seen GLS was brought with RM money so if RM goes so does GLS - what am i missing ?

ST and the rest of the board would get nothing right ?

The conspiracy theorists are tying themselves in knots! IDS is still one company and I doubt the government will easily let it uncouple before insolvency and administration...

What happens after that is anyone's guess... It will be messy because of the USO and the need for a reliable postal service. It might get carved up but current shareholders and board will not walk away with any goodies; if any at all. DK is a shareholder like any other, his investment might turn to dust...

It makes no sense that RM or IDS wants to go bust intentionally; they want a reduction in USO obligations and they want to curtail the Union because it disturbs their decision making and business plan (they did not set out to bust the Union). And most importantly they want to make more profits - sustainable profits through cost cutting and bigger market share of parcels and newer products.

All those going on about them running it into the ground are way off the mark. They are determined to carry out their business plan - with or without the Union or workers

IDS is a holding company , Royal Mail , Parcelforce and GLS are subsidiaries of IDS , they are separate companies under the IDS umbrella, why do you think they set up IDS .

[britwrit]

The company was privatised as RMG. Obviously you can't say that Royal Mail are making huge losses or has to go into administration because then GLS and Parcelforce go with it, but you can rebrand as IDS and say that the RM part in particular is failing. That was the whole point of the renaming and has been what the board has wanted since day one - no USO, just an agency parcel business.

If the company fails, then it was sold as one entity, it should be taken back into public ownership as one entity. It probably wouldn't, because Tories, but it should.

And I get that people are frustrated with the union but I don't know what they expect. The board wants RM off their books. They've built a 1bn hub only to complain about a 400m loss, while also paying out bonuses and dividends. They are lying and gaslighting the entire workforce and it sounds like some of you believe it. I believe the union can still get us a deal but they're dealing with a management that wants RM off their hands and knows that worst (or best) case scenario, the government picks it up with zero loss to themselves.

Again, this isn't something the postal services act foresaw. Everybody assumed that RMG would merrily continue on as RMG, one big entity.

Faced with this, the government will do what's best for them. They're evil, not stupid. Why take a big hit just so somebody else can make a lot of money? They'll toss it back to the board and say "You deal with it."

[chrisj]

Ok can someone tell me how GLS can escape the administrators ?

from what i have seen GLS was brought with RM money so if RM goes so does GLS - what am i missing ?

ST and the rest of the board would get nothing right ?

The conspiracy theorists are tying themselves in knots! IDS is still one company and I doubt the government will easily let it uncouple before insolvency and administration...

What happens after that is anyone's guess... It will be messy because of the USO and the need for a reliable postal service. It might get carved up but current shareholders and board will not walk away with any goodies; if any at all. DK is a shareholder like any other, his investment might turn to dust...

It makes no sense that RM or IDS wants to go bust intentionally; they want a reduction in USO obligations and they want to curtail the Union because it disturbs their decision making and business plan (they did not set out to bust the Union). And most importantly they want to make more profits - sustainable profits through cost cutting and bigger market share of parcels and newer products.

All those going on about them running it into the ground are way off the mark. They are determined to carry out their business plan - with or without the Union or workers

Some people in here were saying they still have shares. Should they sell up quick?
And why would that Czech bloke want to lose all of his shares?
None of it makes sense to me.

Why would Simon Thompson and the other top execs including Rico Back want their shares (options/bonus) to tank or disappear all together? It does not make sense to keep saying that they want to ruin the company or run it down; the so-called service, Yes to that because most of it is redundant and past it.

Most private companies end up giving poor service anyways... The evidence is there to see for all privatised companies - they will never be like old!

[sindba]

I don't think they want to deliberately run it down. I think the truth is even worse - they simply don't care what happens to Royal Mail.

They just want to squeeze every last penny out of their plaything for a while before moving on to the next parasitic jobs-for-the-boys grift. They won't have to pick up the pieces of the wreckage they 've left behind.

Just look at Thompson's CV. Riddled with lucrative failure. Track and trace ffs!

[clashcityrocker]

I don't think they want to deliberately run it down. I think the truth is even worse - they simply don't care what happens to Royal Mail.

I think with 24% of the business VESA probably do care what happens.
ST wouldn't be there if they were worried about their investment.

[blacov]

This has been pretty clear for quite some time now that RM board or should I say IDS directors, wanted to break up the company and strip whatever they find valuable. We have been played from day one. CWU couldn't really get us anything meaningful, Royal Mail didn't want to engage in negotiations in good faith. They were dead set on advancing their parcel network and made it quite clear the letter delivery is a burden, they tried to save face by reducing the USO but it failed so now they are moving to plan B of breaking up the company and calling in the administrators, may as well be a last minute bluff to save the face. This carries a huge reputational damage, in my opinion impossible to repair for a very long time.

Royal Mail is on the verge of destruction as we know it. In terms of shares. Since the RMG changed to IDS a break up of company and stripping highly profitable GLS and maybe parcelforce can be boost the price in medium term. Especially if they manage to retain some of the market they used to enjoy as Royal Mail in its still current form. So I wouldn't hit panic sell button but I'd rather forget about any dividends for a good couple of years. If you are breaking even or managed to buy shares for less than current price, you may as well get rid of them because the future is going to be very bumpy for the company in whatever shape and form they will remain. Those well in the red should still hold and at least see how it pans out.

[Sputters]

On twitter .
there will be more talks with royal mail tomorrow.
When will this ever end .

[Burghboy]

On twitter .
there will be more talks with royal mail tomorrow.
When will this ever end .

Once they reach a deal?

[TopperGas]

On twitter .
there will be more talks with royal mail tomorrow.
When will this ever end .

Have you not received the CWU email with links to half a dozen videos posted by DW on FB? At this rate we'll still be discussing the 3 year pay rise in another 2 years time!