20:20 Mobile undergoes restructuring exercise

20:20 Mobile undergoes restructuring exercise

20:20 Mobile is undergoing a restructuring of the business which will see job losses and a rebranding exercise.

Following the successful completion of the company’s refinancing deal, a top level meeting of senior UK managers and international heads was held last week.

Chief executive Meinie Oldersma and finance chief Nick Smith unveiled a 10-quarter strategy for growing 20:20.

Jobs will go as the company rationalises its back office functions across the business, aimed at stripping out unnecessary costs.

Some duplicate positions in the 20:20 Logistics handset division and Dextra accessories division are expected to be brought under one role.

A general rebranding exercise will then follow. The 20:20 name will stay, but bosses are looking at a new logo and how the company positions itself in the market.

A source close to 20:20 said: ‘Bosses have taken a top down view of what is needed to take the company forward. It is a hard assessment of where 20:20 needs to be.

‘The meeting last week was warmly received by the senior management.

‘The company has had a difficult 18 months, but the refinancing has helped.

‘They have strong senior management in place and 20:20 is still the market leader.

‘The key message from the meeting was that the distribution market is maturing and there is a need to take a more value added approach to business.’

20:20's refinancing has seen the banking syndicate that put up the debt for Doughty Hanson's original purchase of 20:20 in late 2006 write down debt from £265m to £92 million in return for a 45% equity stake in the business.

Doughty Hanson has injected £15 million capital into the business while a £30 million credit facility has also been restored to the distributor.

Rival distributor Data Select has had a £120 million bid for 20:20 Mobile turned down by the banking syndicate.

Peter Jones, chairman and chief executive of Data Select parent company Phones International Group, told Mobile he is planning follow-up offers and has his sights on a deal before Christmas.

Written by Mobile Today
Mobile Today

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