New Star - the lessons to be learned

There is an irony that New Star now finds itself owned not just by the syndicate of banks from which...

There is an irony that New Star now finds itself owned not just by the syndicate of banks from which it borrowed so heavily but, by default, by the taxpayer who owns some of those same banks. This may not be a consolation to advisers and their clients who have put up with weeks of uncertainty, but at least that uncertainty has ended. Ultimately, what did it for New Star is what did it for other high street names in recent weeks such as Woolworths and MFI - debt. Unlike Woollies and MFI, New Star is fundamentally a good business in so much as it has a lot of good people, a good brand, ...