It took over a decade for Gerald Ratner to grow the family jewelry business and just 10 seconds to see it collapse like a deck of cards!
In the face of the British businessman, the advertising slogan "better to chew than to talk" finds its best application after the dissolution of the company resulted from an attack during a speech, which cost him many millions.
Gerald Ratner was born in London on November 1, 1949 and from a young age he had expressed his love for business. In 1966 he started working for the family jewelry business, which he eventually inherited and managed to grow and become the absolute ruler in the 1980s.
The success was so great that every commercial street in Britain had a Ratner store. The British loved his jewelry, which he sold at very low prices, wanting the working class to be able to buy it. Gerald's life had splendor, wealth and contacts with high society. He drove expensive vehicles, lived in impressive villas, vacationed on boats, traveled by helicopter and even hung out with Margaret Thatcher!
It only took 10 seconds for him to stop being a modern Midas and destroy his business giant, watching his millions flutter their wings.
In April 1991, Ratner gave a keynote address at the Institute of Directors in London. It was a great opportunity for his personal and business promotion and that is why he sought the help of experts in what he had to say, under the guidance of rhetoric consultant Greville Janner. The Ratners Group had to reach even higher and Gerald was more determined than ever.
After preparing his speech, he distributed it to the company staff, asking them to make their comments and any necessary additions. One of them said: "I think you should tell 1-2 jokes. "People love your jokes." Such a joke was fatal.
The speech was given on April 23, 1991 in Albert Hall, London, in the presence of many businessmen and journalists.
"We cut into pieces even glass decanters, along with the glasses and the silver tray that your butler serves you, all for 4,95 pounds. Everyone asks me, "How do you do that at such low prices?" I say: "Everything is completely rubbish!" He said in his speech, marking the beginning of the end.
The audience froze for a moment. But not Ratner who did not make any move to save what he had said, but added another joke, which made the situation even worse for the quality of his jewelry that the British loved so much. "I sell a pair of earrings for less than a pound, which is cheaper than a shrimp sandwich from Marks and Spencer, which definitely lasts longer!"
Ratner's blunder was immediately reflected in numbers. Within a few days, the company's shares fell by 500 million pounds, with the result that the previous giant was dissolved. The same thing happened with the customers of the stores who, one after the other, turned their backs on their former favorite businessman, putting a padlock on his stores.
In an effort to stabilize the situation, Gerald immediately hired a new chairman of the company, who eventually fired him from the company in 1992. The company then changed its name from Ratner Group to Signet Group.
In 2007, Ratner gave an interview to the Jewish Chronicle, going back to the day of the big mistake and shooting his arrows at the. Press.
"It was basically a very good story for the Daily Mirror and the Sun. They misinterpreted the speech with my deceit. 1991 was a period of recession and political corruption and its relationship with capital were playing a role. When they heard the word rubbish - an unusual expression for a businessman - they saw it as an opportunity to dig my own pit and accuse me of making fun of my customers. And that was ridiculous, "he said.
"I could not believe it," he said, adding: "A few years before the speech I was thinking about what I had accomplished and I thought I was dreaming. When everything went awry again it seemed like a dream, like a train of terror. "I remember one day walking in Hyde Park and feeling so angry that I had lost everything because of a speech."
After a failed attempt to become a business consultant in France in the mid-1990s, he opened a wellness center in Henley on the banks of the River Thames in 1996, which after five years sold for 3,9 XNUMX million.
"One day my wife came and warned me that she would leave me if I did not leave the house. What irony! "My first wife divorced me because I was never home!" he had told the Jewish Chronicle about his new activities.
Today he is active in the Indian market and has returned to his old art, selling jewelry, but now only on the internet through Gerald Online.
What did he gain from his failure?
"Most people are very worried about their problems. After the incident I started cycling because I had a lot of free time. The bike held my mind in place. Even now that I remain an entrepreneur I find time. I lost εκατο 500 million but I won the bike. "I guess most would prefer the 500 million," he said.