Wolseley chief executive departs by 'mutual consent'

How could a senior executives with a company as huge as Wolseley believe the housing bubble would continue indefinitely? I am an English professor, and I knew the bubble would burst at least six years ago. When housing prices rise an average of 5% per month in major markets, there comes a point at which most people can't afford to buy. At that point, the lenders step in and offer ridiculous loans so that many people purchase homes they can't afford. The rest of the story you know. Wolseley's leadership is either very stupid or out of touch with reality. Investors are to blame too because most of them care only about immediate returns instead of sensible long-term corporate planning so the company could be prepared for and weather the storm comfortably.

Norasusan wrote:

How could a senior executives with a company as huge as Wolseley believe the housing bubble would continue indefinitely? I am an English professor, and I knew the bubble would burst at least six years ago. When housing prices rise an average of 5% per month in major markets, there comes a point at which most people can't afford to buy. At that point, the lenders step in and offer ridiculous loans so that many people purchase homes they can't afford. The rest of the story you know. Wolseley's leadership is either very stupid or out of touch with reality. Investors are to blame too because most of them care only about immediate returns instead of sensible long-term corporate planning so the company could be prepared for and weather the storm comfortably.

Having experienced Ferguson(Wos) up close and personally, I will tell you it was arrogance. They would buy a good company, come in and brag about being as big as Coca-cola, and then set about changing the company to the Ferguson standards. Those standards are: managers for managers for managers. Plus, they like to dictate to their customers who they do business with. Also, they are tell the customer what they want to hear, knowing it is not the truth. It took less than a year to destroy the company my husband worked for.

I have experience twice Wolseley’s management skills. While working for successful companies that Wolseley had purchased; both times these companies were extremely profitable. They did not allow Ferguson to gain in the market, so they purchased the competitor. Next they tore the successful structure down & implemented the belief "that they do all things correctly." That formula only lasts as long as you can keep the key personnel.

Well I am working for another distributor & we have taken the place of the last company they purchased. Wolseley' & Ferguson’s lack of respect for personnel leaves much to be desired.

Chip came from Ferguson who has acquired many companies around the US & in rapid order dismantled the successful models that the companies used to beat Ferguson. The results are; a large loss of valuable talent to go on and compete with Ferguson another day.

Hip! Hip! Hooray! For Capitalism!

just wondering wrote:

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Having experienced Ferguson(Wos) up close and personally, I will tell you it was arrogance. They would buy a good company, come in and brag about being as big as Coca-cola, and then set about changing the company to the Ferguson standards. Those standards are: managers for managers for managers. Plus, they like to dictate to their customers who they do business with. Also, they are tell the customer what they want to hear, knowing it is not the truth. It took less than a year to destroy the company my husband worked for.

I hate to say this but I'm willing to bet my bottom dollar that we are going to be Woslely's next Stock Building Supply.

been there before wrote:

I have experience twice Wolseley’s management skills. While working for successful companies that Wolseley had purchased; both times these companies were extremely profitable. They did not allow Ferguson to gain in the market, so they purchased the competitor. Next they tore the successful structure down & implemented the belief "that they do all things correctly." That formula only lasts as long as you can keep the key personnel.
Well I am working for another distributor & we have taken the place of the last company they purchased. Wolseley' & Ferguson’s lack of respect for personnel leaves much to be desired.
Chip came from Ferguson who has acquired many companies around the US & in rapid order dismantled the successful models that the companies used to beat Ferguson. The results are; a large loss of valuable talent to go on and compete with Ferguson another day.
Hip! Hip! Hooray! For Capitalism!

What these arrogant clowns forgot was, there was a reason why these customers were not dealing with Ferguson anyway. In essence they eliminated the competition for all of the other smaller local suppliers in the majority of these markets. The 99 layers of management at this company is appalling at best. They are just a bunch of "tools" that lack people skills and management skills. The stock holders demanded Chips head, and rightfully so. With a Brit at the helm, I am guessing things are going to be much more streamlined and much leaner in the future.

Sounds like sour grapes to me.
I got cought up in the layoffs but I still do business with Ferguson for the same reason most contractors do and it is having the parts you need when you need them.
As far as WOS and SBS, WOS never over saw SBS and the business practice at SBS was the pourest that I have ever seen in my life. The SBS managment spent all their time in meeting woried about the Ferguson Management taking them over.
If Chip had the balls to do this 3 plus years ago I bet the situation with WOS, FEI and SBS would be much different.

Well Woseley did it again. They bailed themselves out by disregarding the share holders & released millions of shares devalueing the current shares to raise money. I am glad they have new leadership. They hopefully will start with the many layers at Ferguuson & streamline that company. I have never seen a company spend more money on executives as they have. The expense accounts of these people could feed a 3rd world nation.

been there before wrote:

Well Woseley did it again. They bailed themselves out by disregarding the share holders & released millions of shares devalueing the current shares to raise money. I am glad they have new leadership. They hopefully will start with the many layers at Ferguuson & streamline that company. I have never seen a company spend more money on executives as they have. The expense accounts of these people could feed a 3rd world nation.

I hear Ferguson is in financial trouble. Heard they are starting to get cut off from suppliers. Anyone heard any of these rumours?