Page 81 - Stakis Consolidated Teaching Note

the Banks. In addition, it also meant finding the right man
to take the executive reins and run the company on a long

term basis. It was never Sir Lewis’ objective to run the

organisation long-term. He was the trouble-shooter,
whose job should only last two or three years. In fact Sir

Lewis stood down on March 1st. 1995 after Stakis had

recorded an increase in profit to £20 million.

Perhaps the key to guaranteeing the survival and future

success of Stakis lay in finding the right man to develop the

strategy to take the company forward. This was solved

within a year of Sir Lewis taking office when David Michels
was appointed.

For Sir Lewis the key to achieving his goal of renegotiating
with the banks hinged on selling something, anything to

show the banks that remedial action was being taken.

What appeared to be a good bet to sell was the casinos.

Sale of this division would reduce gearing and help allay
the fears of the banks. The point though, is that it did not

matter to Sir Lewis what was sold as long as something

was sold. Consequently, when casinos failed to attract a

buyer, and David Michels appeared on the scene with a
strong desire to retain casinos in the portfolio with hotels

little resistance was made by Sir Lewis.

A number of reasons support this change of direction:

• In the year that casinos were on the market they failed

to attract a buyer