Connect seeks quick cash
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• Connect UK is still seeking a fast cash injection of around .25 million, following the withdrawal of its main backer (CM 17-23 September).
The yet-to-be-launched parcels operator last week met with finance house Coopers and Lybrand to draw up a new business plan. Coopers and Lybrand introduced Connect to a number of other financial institutions in the City. According to Connect these organisations were prepared to inject some money into the business, but the process was likely to take between two and four months — which is deemed too slow for Connect's needs.
The company is now searching for private backing, possibly through a consortium. Offers of money from Connect franchisees have not yet been taken up — the company says it does not want to use this money until the future of Connect has been assured. It claims that individual hauliers have offered as much as ,E200,000 to help Connect through to the launch. This is on top of the £5,000 already paid by each haulier for its franchise.
Connect's computer network should be installed within the next ten days, and the company still hopes to launch before mid-October when it has a contract to distribute 7,500,000 holiday brochures throughout the country Connect is worried its creditors are becoming impatient for repayment.