The Rank Group
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The Rank Group plc (LSE: RNK) was established on December 22, 1995 as a public limited company in England and Wales and in October 1996 it became a holding company owning all the outstanding shares of the Rank Organisation.
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[edit] Origin
The Rank Group Plc is the successor in interest to the Rank Organisation which was formed out of the business interests of its founder, J. Arthur Rank.
[edit] Redirection
In February 2000, the group sold its interests in Pinewood Studios and the ODEON cinema chain. It also divested itself of its engineering companies plus its Butlins, Warner and Haven Holidays holiday and recreation facilities, which were all sold to Bourne Leisure.
In December 2005, it sold Deluxe Film for $750m, leaving five main businesses: Mecca Bingo, Grosvenor Casinos, Hard Rock, Blue Square and Deluxe Media, the last two of which are unprofitable. It also currently holds around £800m of debt. However, the casino division is well-placed for growth as part of current and forthcoming Gambling Deregulation laws which should see the introduction of a number of new Las-Vagas style casinos being built in the UK.
In the short term, profits are under pressure due to the forthcoming smoking ban (already law in Scotland, due to hit the UK in 2007) and the increase in the UK National Minimum wage (which is due to rise from £5.15 to £5.45 per hour in September 2006), on or just-above which most of its employees earn.
It is currently one of the worst performing companies in the FTSE250, with a stock market value of £1.2bn (compared to £2.0bn six months ago), and is currently being prepared for sale either to a private equity interest or joint partner.
On December 7, 2006, Rank sold the Hard Rock business to the Seminole Tribe of Florida for US$965 million. Rank is keeping the Hard Rock Casino in London, but will be changing its name. Included in the deal is 124 Hard Rock Cafes, four Hard Rock Hotels, two Hard Rock Casino Hotels, two Hard Rock Live! concert venues, and stakes in three unbranded hotels.
[edit] Divisions
By 2003, The Rank Group Plc consisted of three divisions:
- Gaming: Mecca bingo, Grosvenor Casinos and Blue Square.
- Hard Rock Cafe: Company-operated and franchised themed cafes.
- Deluxe film processing (sold in 2005) and related DVD and VHS services ([1]).
[edit] See also
- RHM - formerly Rank Hovis McDougall, the family flour milling company of J. Arthur Rank
