Which company experienced a tarnished reputation and scandal?

In the UK, one company, and one man, is synonymous with tarnishing his company's own brand that neither ever recovered from the scandal.

By the close of the day's business on April 23rd 1991, the numerous branches of Ratners, the UK's most well-known purveyors of low-price jewellery and gift ceramics, had enjoyed another day of profitable business. That evening, the CEO of the Ratner Group, Gerald Ratner, whose other business concerns included H Samuel and Kays (the Ratner Group's outlets in the USA,) gave a keynote speech at the invitation of the Institute of Directors, an institution founded in 1903 to support the interests of successful company leaders. By the morning, the reputation of both Gerald Ratner and his stores lay in ruins, thanks to Ratner himself.

One of the Worst PR Disasters in Business History

During the speech, Ratner posed the rhetorical question of how his stores could possibly sell items as sherry decanters at such low prices. "Why? Because it's total crap." Ratner went on to remark that a line of earrings sold in his stores cost the same as a sandwich, "but probably wouldn't last as long." 

If Ratner intended his comments to be taken humorously, this sentiment was not shared by the British public once his speech had made the front pages of the newspapers.

Overnight, £500 million pounds was wiped off the value of shares in the Ratner Group. Angry at what they took to be Ratner's sneering, insulting and contemptuous views, customers stayed away from the Ratners stores in droves. The firm almost collapsed in light of the scandal and nothing the company did managed to halt plunging sales. 

Gerald Ratner resigned 18 months later and, its reputation tarnished far worse than its jewellery, the company renamed itself the Signet Group in 1993. To this day, if a British businessman goofs in some notable way, he is said to be 'doing a Ratner.'     

If you can stand to watch Ratner's speech - which put hundreds of his own staff out of work - then here it is: