OE in Administration

A little birdie told me that Optical Express might be planning to ‘rebrand’!

Last year they approached Arnott Eye Associates (their neighbours @ 22 Harley St), perhaps with a name change in mind, but Arnott’s Director Richard Packard recently assured me, "There are no current negotiations between Arnott Eye Associates and Optical Express and none anticipated”.

It makes sense that OE may be considering such a move, not least because their history of recent years is chequered with bad press - not forgetting the relentless shadow of OERML - and their withdrawal of aftercare beyond 12 months, no matter how damaged the patient, suggests they are unconcerned about the increasing complaints and negative publicity associated with the company name.

And, as more and more people are suddenly discovering that they now have to pay for eye tests they were told were free for life, OERML is flooded with emails every day from people wanting advice!!

Definitely not the way to entice new customers and inspire trust!

Another way to rebrand is to put a company into administration - farcical that this is described on Wikipedia as "a process designed to protect limited companies from their creditors”!
en.wikipedia.org/wiki/Administration_(law)

Pre-pack administration is also an option, whereby the company secures a buyer before entering administration, usually for a fraction of the value, and it is possible for the previous directors or management to purchase the assets of the company from the administrator and set up a new company - as David Moulsdale did with the Bridgewater Manchester Hospital in 2015.
www.manchestereveningnews.co.uk/…/bridgewater-hospit…

While totally unfair to creditors, pre-packs are highly attractive to companies who simply want to shake off their debts and responsibility to previous customers - or in OE's case, responsibility to their patients, especially the thousands of damaged ones!

An example of this is Cobra Beer, who sold to Coors immediately after they entered administration in 2009. The brand continued but left suppliers out of pocket by an estimated £75 million.

And this is legal

How the hell can a company continue to operate with liabilities of £14mil, which could actually be as high as £151mil?!

Yes that is correct one hundred and fifty one MILLION pounds, which doesn't include that owed to HM Revenue & Customs!!! No doubt OE's clever accountants and legal beagles will do their best to ensure that the life style of their client won't be affected no matter what the outcome.

Then again, maybe there's a twist in the tail still to come :woohoo:

The entire 9 page PDF document is available on Facebook.
15 February: www.facebook.com/OpticalExpressRuinedMyLife

It is currently being extensively renovated, I’m told by the onsite workmen, for millionaire owner of Optical Express and will feature a penthouse flat (for) the owner and a restaurant and call centre spread over its remaining six storeys.
clarespencer.wordpress.com/2012/05/30/glorious-sculpture/

200svs.com/serviced-offices/ Vincent St location is described as the representative's headquarters. Hugh Kerr and his buddies prefer to be here than at the less prestigious Cumbernauld head office at Westfield Industrial Estate.

The Renfield Street clinic (oldest OE flagship store) has moved to the first floor. The call centre is on the fourth - where boss Moulsdale likes to hover.
www.opticalexpress.co.uk/store/glasgow-2...-vincent-street.html
What most don't know is that David Moulsdale owns the entire building.

I'm assuming what Johnnie Singh really wants to know is where this would leave their patients?

In the same way Optimax owner Russell Ambrose did the dirty on the Ultralase patients OE could do the same, and I have to say I'm amazed they haven't.

OE patients with problems were left with nowhere to turn after the two most recent administration scams and I'm sure we can look forward to more.

I heard the Glasgow Renfield Street clinic closed two days ago, apparently they're now performing laser operations out of their head office at 200 St Vincent Street.

I would expect anyone already in a legal fight with OE will be covered by their insurers if they go into liquidation. But there'll be many many more who'll unfortunately have no chance of medical after care or financial recompense when that happens.

Is there anyone who can tell us what will happen if Optical Express stop trading or go into liquidation?

I worked in the optical "core" side of Optical Express for a short period (the dealing of spectacles had very little to do with Laser) and they are a poor company to work for. Going into administration between October-January makes sense due to that being the quietest period in optics. For example, I managed another high street optics practice whose takings went from 70k a week until Oct/Nov down to 10k a week in December.

OE closed a lot of under performing practices in October 2012 to avoid the last rent quarter, leaving a lot of landlords and staff members high and dry. I have friends who worked in these practices who turned up to work to find the shop fitters already removing stock and equipment from the premises.

In the 6 months i managed one of their more successful practices I was never allowed to issue a refund, even when a customer had waited 5 months for a pair of spectacles they paid nearly £1000 for!

In the optical industry they have a terrible reputation as employers. When i was there most recruitment firms would no longer work with them. Two locum optometrists I knew personally worked a couple of days for me and it took nearly a year to get payment from OE after the threat of legal action.

In my opinion the company is not struggling financially, it is a combination of clever book keeping and transfer of wealth to give the impression of hardship. When i was there (my figures are a little old) profits from Lasik were around 90%.

The difference in prices to customers appeared to be based on how much they thought they could get away with charging, as the procedure for -1.00dps is similar to that of -6.00dps in both time and expertise, yet the price is usually a lot higher. The highest costs are the staff, as OE used to own the machines and lease them back to themselves.

Their surgeons ALWAYS travel first class and have the best premium rooms, staff bonuses paid for laser consultations were obscene. For example, pay 3k for the procedure and approx £500 of that goes into various bonus pots, not counted towards salaries of the staff or the surgeons.

To maximise profits they used to insist on overbooking surgical clinics so the surgeon would literally do a 12 hour shift of procedures. I don't know if it's changed since I left.

They still owe me wages and redundancy money and I would never work for them again.

The clinic was trading as Optical Express. The agreement you signed presumably did not refer to a separate entity in Milton Keynes.

OE send patients from Milton Keynes to other locations for RLE surgery, and in the case of problems to the Harley Street Complex cases clinic.

Unless your agreement was signed with a differently named company then it is still Optical Express.

Suggest complaining to Trading Standards. OE advertise and treat as OE and conveniently abandon patients when it suits leaving them stranded both medically and financially.

Action can be taken against the surgeon regardless of the clinic. Perhaps if this happened more it would cause surgeons to think twice and wonder if it is worthwhile working for OE!

I had my eyes damaged by Optical Express in September 2012 & started legal action in August 2013. Today I have received a letter forwarded by my solicitor from Begbies Traynor Insolvency company to advise that OE put the Milton Keynes clinic in administration on 10th October 2013!!

"Begbies Traynor is the UK’s leading business rescue and recovery specialist, providing a partner-led service to stakeholders in troubled businesses."
www.begbies-traynorgroup.com/begbies-traynor/

"Business rescue"? What about patient rescue????