Booker chief confirms woes; shares plunge

Booker PLC CEO Stuart Rose confirms the existence of worsening financial problems in the food wholesaler. Earnings in the company has been battered by lower trading in its core cash-and-carry business and food services as well as the costs of bringing a national distribution network to the market. Booker, which has a net debt of about 275 million pounds sterling, even told its banks that it may not deliver on some commitments because of the gravity of its financial situation. The company is planning to improve its profit performance through such moves as cost-reduction and the sale of several divisions to concentrate on its wholesale and foodservice operations.