do, but there will be a load of things that Jim will be able to deal with. It is
more stable.He added^22 that Mr McAdam would be a ‘tremendous asset’ to the
company: ‘He has got a lot of experience – in retailing as well – and is well
known by the banking community.’ Mr McAdam’s immediate role was to
keep the bankers happy and his appointment elicited an unusual statement
of their support. Although Ratners had already cut the headcount by 10 per
cent, Mr McAdam believed his experience of rationalization in the clothing
industry would complement Gerald:^23
I am battle-hardened from the textile industry in just this sort of exercise.
We have been doing it for a hell of a long period of time. There is going to
be no quick fix. It is going to be a long, hard slog ... I will be tackling the finan-
cial issues and looking at the organisation and the structure. Gerald will be
running the commercial side of the business. I think we complement each
other.We both feel very comfortable with the chemistry. I have a real respect
for him and I think we’ll make a good team.How the two men would work together seemed to be a source of endless
fascination. By temperament, background and outlook they could hardly
be more different. Where Ratner was spontaneous, wry and softly spoken,
James McAdam was described as single-minded, loud and blunt: having
run the Country Casuals clothing chain, he had also had experience of the
retail side but was more of a big company man.
Despite huge price-cutting promotions there was a 15 per cent fall in UK
jewellery sales in the vital six weeks before Christmas and Ratners
announced that it was likely only to break even in the year to 1 February.
The results were worse than the City had feared. The company reported a
total loss of £72 million and Ratner shares closed 2p down at 21p.
Restructuring and departures
Following a management reorganization, Victor Ratner, deputy managing
director and cousin of Gerald, left the company, though James McAdam
stated^24 that both he and Gerald were ‘together on this’. All the
group’s UK jewellery operations were reorganized under a single
management board, chaired by Gerald Ratner. Masarrat Hussein, the
administrative director, also left the company. The final board now com-
prised four executive and two non-executive directors, though a third was
added later to strengthen the legal side. Mr McAdam stressed that he was
not stamping his authority on the company for the sake of it: ‘We have
created a sensible operating structure. Gerald is driving the business
The referral and influence market domains 263