I had been a 100% API customer for 9 years and only very...

I had been a 100% API customer for 9 years and only very recently joined the marketing group and took extreme offence at the manner in which the negotiation occurred. I was told decide to come with us (API) within two days or all discounts will be withdrawn. I countered with keeping all of my business with them to put me back on usual terms while I considered their offer. And I was told take it or leave it. That's why I feel strongly on the issue. I have not owned shares in API for 18 months or so. But I looked at this forum to see if there was any comment.

Multiply that by 17% of their turnover, if the figures in the story is right, and I cannot verify that. Then it could be an issue???

As I said, if only 10 or 20 change then it is not significant if 200 change it is IMO major. The story says 400+ accounts have left API as a result of their actions on friday and presumably are being serviced by another wholesaler (I know my new wholesaler has bent over backwards to get me set up over the weekend)

I don't believe that only a handful have stayed with API, but I would not in anyway be surprised if 300 have been pushed out by API and 100 stayed. When the dust clears then it will be known. I am surprised there has not been an annoucement by API when it is in the trade press.

I do not know what the value of API was, or is. I do know that all of the wholesaler operate on incredibly small profit margins, less than 30 Million pre tax dollars for API on sales of over 3 billion in 2008 and 2009. And that was the good times when the share price was higher.

How any business can afford to lose 5, 10 or 17% of its gross revenue on top of the floods, Pfizer, government cost cutting is beyond me given that their margins are so tight and their fixed costs are high. Perhaps there was no profit in the business anyway, but the other wholesalers seem very interested in trying to take the business on.

Sorry for rambling, but in answer to the question I think it is really bad news. In the long run, a line has to be drawn. But if API can't afford to keep the business, I am not sure if they can afford to lose it either.