Backer backs out: Connect goes on
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• Connect UK's largest backer has run into financial difficulties and has withdrawn its interest in the yet-to-belaunched parcels company. Even so Barry Glazer, Connect's marketing manager is confident that Connect will be launched early in October.
Glazer will not name the financial institution which has withdrawn its backing, saying only that it is a major international shipping company. Connect is now looking for an alternative backer, but Glazer says the company has enough resources to continue up to and beyond a launch in October.
This week Connect UK met 16 of the hauliers who have taken franchises on the Connect network, to explain the situation. It is understood that several of those hauliers have offered loans to Connect.
Now the firm has decided to channel all funds to the launch — so around 30 hauliers awaiting repayment of deposits will have to wait until the company is up and running, says Glazer.
Connect is using its remaining funds to finance the installation of computer systems at 60 of its franchise holders.
Delays in installing this computer equipment are blamed for the most recent postponement of Connect UK's launch, last scheduled for 1 September.
Glazer freely admits that Connect UK is facing "financial problems" and is concerned that publicity about the situation could further endanger the company's future. "We are trimming furiously at the moment," he says. "We can launch without a backer using our own resources, but we are currently talking to a lot of City financial institutions."