Sacked Woolworth’s men strike it rich

Press, 23 October 1984, Page 38

Sacked Woolworth’s men strike it rich

NZPA-PA London Malcolm Walker and Peter, Hinchcliffe, Britain’s newest multi-millionaires, jumped for joy on the steps of the Stock Exchange last week The two young executives were sacked by Woolworth’s 11 years ago for running their own small shop in Oswestry, Shropshire, as a sideline. Last week, the City valued their company, Iceland Frozen Foods, at £44 million (SNZU7M). Both men collected a cheque for £I.6M (SNZ4.2M) when the shares went public. But they each own 28 per cent of the company, which makes them each worth at least £IOM (SNZ26M). “You won’t make that working at ’ Woolworth’s,” said Mr Walker, aged 38. “How do I feel to become a millionaire? Super!” The road to riches began 13 years ago when the two

friends bought all the strawberries at a roadside stall and sold them to a beauty spot. With the profit, each put in £3O (?NZ79) and opened a frozen-food shop. At the time, they were working as deputy managers at Woolworth’s stores in North Wales. In 1973, the Birmingham area manager dismissed Mr Hinchcliffe, aged 37, with the words: “Go r,un your own fish and chip shop, or whatever it is.” Eleven years on, and the shop has grown to a chain of 81 stores selling frozen foods and groceries. Profits have risen from £152,000 to £ I.BM in five years, and; the firm is forecasting £ 2.8 M (SNZ7.4m) for 1984. “We are offering three packs of fish fingers with every million shares,” joked Mr Walker. Iceland’s share offering has given a tonic to the British Rail pension fund, which took a 16 per cent stake to help finance a new

cold store some time ago. That £BOO,OOO investment is now worth nearly £7M. The chain, with sales second only to the market leader, Bejam, has built its successes on up-market, airconditioned stores, mainly in North-West England. “From the start, we decided to go the Marks and Ker way,” said Mr cliffe. The company is opening 15 freezer centres a year.