There's a Northern saying: "Clogs to riches and back to clogs in three generations." My mother's family were hatters and they were extraordinarily successful.

My grandfather cycled to work each morning to make sure the 6am shift started on time but the family lived in style.

Some left Manchester and went to live in Buxton - the equivalent of buying a very large house in Tongdean Avenue, Hove.

It didn't last, fashions changed and the third generation, unable to find new markets or diversify, closed the business.

Does the old adage hold true today? I suspect it does but the timescale is even shorter.

Hays plc, a company started in the Fiftiess, is in the news for all the wrong reasons.

My friend Stephen Brown was in the business from the beginning.

He worked in Smithfield for a small firm dealing in poultry.

To his great surprise, his grandfather left him the company when he was 22.

He knew nothing about the business but was good with people and employed Ronnie Frost as manager.

The firm realised there was a real opportunity in the transport, warehousing and storage of frozen foods.

Benard Matthews with his "bootiful birds" was an early customer and later Waitrose.

A Kuwaiti bank made a substantial investment and Ronnie Frost was made managing director.

My friend retired and Ronnie Frost went on to build Hays into a substantial business and a plc.

The company diversified into recruitment and mail delivery.

Ronnie Frost retired a City hero - what could go wrong?

In 2000 the shares began to slip. So what? Many companies were doing a great deal worse but bad news was on the way.

In October 2002 the extent of the company's problems was revealed and its shares dropped by 20 per cent in a single day.

Two weeks ago, Hays chairman Bob Lawson said the board has concluded there must be a new strategy and it was concentrating on Hays Personnel Division.

Its logistic and commercial divisions were to be sold.

Is that the right decision?

Recruitment is a very competitive market. There is a rumour the company is to lose its valuable contract with Waitrose.

Why make the company's decision public? Who wants to trade with a company whose parent has lost interest?

What about the workers? You can picture the scene.

"It's in the paper Ivy - we're up for sale. After all these years. I just don't believe it."

Wednesday March 19 2003