Definition of 'Asset Stripping'
The process of buying an undervalued company with the intent to sell off its assets for a profit. The individual assets of the company, such as its equipment and property, may be more valuable than the company as a whole due to such factors as poor management or poor economic conditions.
For example, imagine that a company has three distinct businesses: trucking, golf clubs and clothing. If the value of the company is currently £100 million but another company believes that it can sell each of its three businesses to other companies for £50 million each, an asset stripping opportunity exists. The purchasing company will then purchase the three-business company for £100 million and sell each company off, potentially making £50 million.
Except that any sales of players are regularly challenged at undervalue, contracts have been allowed to wind down and no value accrued. This isn't asset stripping this is financial fire fighting when outside monies have dried up for what ever reason. Players are sold or let go not to make a profit but to pay the bills.
it is a relentless cycle that seemingly SISU have no way or intention of stopping.
Only way they have a return of their loans is by getting hold of the Ricoh. Yes they are playing brinksmanship with the council charity etc as a tool to get hold of the Ricoh - but what is currently happening at ccfc isnt about asset stripping for their investors profit. Players are going simply to pay the bills and reduce losses & cashflow shortages.
