SCOTS entrepreneur Sir Tom Hunter has admitted making mistakes in his business dealings – and said his charitable donations would have to be scaled back in the coming year.
Last week USC, part of the portfolio of West Coast Capital, the investment group co-founded by Sir Tom, was placed into administration with the loss of 300 jobs as the economic downturn continued to take its toll on the high street.
Sir Tom admi
tted that errors were made in his businesses, but vowed to get through the financial crisis.
But the £250 million which it is estimated could have been wiped off the value of West Coast Capital is set to affect Sir Tom's efforts to become one of the greatest philanthropists of his time.
"I did want to give my money away, I just didn't expect it to be in quite this way," he said.
"Have we made mistakes? Absolutely. Certain things happen to you like the credit crunch and, no, we didn't see it coming. But there are certain things you inflict on yourself, but that's the life of an entrepreneur … it's a rollercoaster."
Kilmarnock-based USC was forced to call in administrators last week, although a new company, Dundonald Holding, also owned by Sir Tom, rescued 43 stores in a buy-out, leaving just 15 facing likely closure.
The Ayrshire-born tycoon has been in talks with his bankers, HBOS, to renegotiate the terms of several deals that have gone sour. Negotiations included reducing his 40 per cent stake in Wyevale Garden Centres to 25 per cent.
Sir Tom also wrote off £35 million, reflecting the fall in value of his stake in housebuilder Crest Nicholson. Many had criticised his eagerness to buy the builder in March 2007 for £715 million, as it was seen as too expensive.
Sir Tom admitted that there would be challenges in the next year, but vowed to fight through them, saying "I will get through this because I am not wiped out. This is a period in which we focus on getting through it and dealing with the investments we've got and taking some tough decisions, whether that is reconstructing them, investing more in them or closing some down."
He added: "2009 will be tough. Are there more problems round the corner? Yes. Is it all over? No, definitely not … the UK economy is in a mess and there will inevitably be challenges ahead."
In 2007, Sir Tom pledged to give away £1 billion to good causes during his lifetime.
While standing by this promise, he admitted at the weekend that donations may have to be curtailed in the short-term.
"The only way we can invest in philanthropy is if we make money from West Coast," he said. "It is a very simple relationship, so we will be scaling back what we are doing this year."
Sir Tom said he did not regret his pledge to give away £1 billion.
"I believed it then and I guess it's still my dream.
"I was always very clear it was in my lifetime and my life isn't over. I've still got another 40 years left in me hopefully."
PROFILESIR Tom Hunter began his business career selling trainers from the back of a van.
The son of a grocer, he went on to build up the Sports Division chain, employing 7,500 people across more than 250 stores. He eventually sold the company to JJB Sports in 1998, making more than £250 million.
The 47-year-old, who graduated from Strathclyde University's business school, established West Coast Capital, an investment firm, in 2001. It has shares in high-street chains USC and Office, among other investments.
Knighted in 2005, Sir Tom was ranked 68th in the 2008 Sunday Times Rich List, although he fell eight places from the previous year.
He remained the highest-placed Scot on the list, but recent events have caused speculation that the economic downturn could result in him losing that spot this year.
Sir Tom has been determined not to keep his good fortune to himself and has a long-standing commitment to philanthropy and charity.
In 1998, he established the Hunter Foundation, which supports education and entrepreneurial projects.
The full article contains 715 words and appears in The Scotsman newspaper.
