The closing shop chains thread...

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Re: The closing shop chains thread...

Postby rebbonk » Tue Apr 09, 2019 12:30 pm

As predicted...

Retail chain Debenhams has been placed into administration.

The high street giant confirmed today that Chad Griffin, Simon Kirkhope and Andrew Johnson of FTI Consulting LLP have been appointed as joint administrators and the completion of the sale of the group, other than plc, to a newly-incorporated company, controlled by its secured lenders.

Under its new ownership, the group will have available to it significant additional funding in line with the £200m new money facilities announced on March 29, 2019.

The group said it will continue to implement the restructuring of its operations, including optimising the store portfolio, in line with plans already communicated, to improve trading performance and deleverage the business.

Terry Duddy, Debenhams’ chairman, said: “It is disappointing to reach a conclusion that will result in no value for our equity holders.

“However, this transaction will allow Debenhams to continue trading as normal, access the funding we need, and proceed with executing our turnaround plans, whilst deleveraging the group’s balance sheet.

“We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance.

“In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing. I would like to thank them all for their recent and continuing support.”

Richard Lim, chief executive, Retail Economics said: “We should not understate the significance of this collapse given the vast property portfolio, number of jobs impacted and the reverberations felt across many high streets.

“Debenhams has fallen victim to crippling levels of debt, which has paralysed its ability to pivot towards a more digital and experience-led retail model.

“Put simply, the business has been out manoveured by more nimble competitors, failed to embrace change and was left with a tiring proposition. The industry is evolving fast and it paid the ultimate price.”

The chain earlier this morning rebuffed another approach from suitor Mike Ashley, owner of the Sports Direct and House of Fraser businesses.

Sports Direct increased its offer to underwrite a rights issue to £200m – £50m more than the amount the Debenhams board turned down yesterday (April 8).

Debenhams rejected the revised offer and announced shortly after 8am that shares in the firm were suspended ahead of a further announcement.

Administration would render shareholders’ stock in Debenhams worthless, including Mr Ashley’s near-30% stake which cost around £150m to accumulate.

Today’ deal means its 165 stores would continue to trade as normal in the short term.

Sports Direct said its improved bid would form part of a “comprehensive” refinancing of Debenhams, but was subject to a number of conditions, including the appointment of Mike Ashley as Debenhams’ CEO and Debenhams’ lenders agreeing to write-off £82m of Debenhams’ £720m total debt facilities.

In a statement early this morning, Debenhams said: “The board confirms that it received a revised, highly-conditional, proposal from Sports Direct in the early hours of 9 April, which indicated a willingness of Sports Direct to underwrite an equity issue of £200 million. The company’s lenders have confirmed to the company that the proposal, on the terms set out, was not sufficient to justify an extension to the 8 April deadline.”

This morning broker Russ Mould likened Mr Ashley’s behaviour to that of a “greedy child”.

The investment director at investment platform AJ Bell said: “The situation has been like a greedy child who wants a new toy. As soon as they get it, all they want is another toy, rather than making the most of what they’ve already got.

“Mr Ashley needs to get back to the day job and regain focus.”

He added: “While Mike Ashley seems to like the thrill of the chase, it is time for him to admit defeat with his pursuit of Debenhams and adding another string to the bow of his retail empire.

“Someone needs to tap him on the shoulder and remind him that he’s already got a core business to run and a bit more attention wouldn’t go amiss.

“Sports Direct’s half year results last December saw the retailer report a 26.8% drop in underlying pre-tax profit to £64.4m. And its share price has fallen by a third since last Summer.

“The Debenhams saga has been a significant distraction to Sports Direct’s management at a time when the retail sector remains very fragile.”


Source: http://www.thebusinessdesk.com/news/1005158-debenhams-confirms-group-placed-into-administration/?utm_source=newsletter&utm_medium=email&utm_campaign=TheUK_9th_Apr_2019_Breaking (possibly requires sign up)
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Re: The closing shop chains thread...

Postby dutchman » Tue Apr 09, 2019 9:12 pm

Office Outlet administrators axe 161 jobs & close 16 stores

Administrators for Office Outlet have announced a raft of store closures and scores of job cuts as they continue to search for a new owner.

The retailer, formerly known as Staples, went under last month and administrators from Deloitte have confirmed that 16 stores will shut down this month, resulting in 161 job cuts.

At the time of its fall into administration, Office Outlet had 1200 employees and 90 stores.

Of the stores shutting down, nine will close on April 7 and another seven will shutter on April 10.

The 161 redundancies these store closures will result in are in addition to the 106 jobs which were lost at Office Outlet’s head office and distribution centre in Daventry last month.

Richard Hawes, joint administrator from Deloitte, said that although advisers were still open to a sale of all or part of the business, some stores must be closed.

The first wave of store closures affects Office Outlet branches in Beckton, Catterick, Gloucester, Newport (Isle of Wight), Merton, Newcastle, Plymouth, Staples Corner (London), and Stratford.

The second wave will affect Cardiff, Carlisle, Manchester, Old Kent Road, Southampton, Walsall and Weston Super Mare.

US-based stationery giant Staples agreed to sell its UK shops to Hilco Capital, the former owner of HMV, in late 2016.

The stores were then renamed Office Outlet, but in 2018, a management buyout led by chief executive Chris Yates took control of the Office Outlet.

In August last year, Office Outlet launched a CVA which saw a handful of stores shut down as well as three years of free rent on 20 others.

Office Outlet is completely separate and independent from online retailer Staples.

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Re: The closing shop chains thread...

Postby dutchman » Tue Apr 09, 2019 9:14 pm

Not mentioned in the article, Alvis Retail Park this afternoon...

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The council has yet to find a new tenant for the former Currys warehouse either.
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Re: The closing shop chains thread...

Postby rebbonk » Wed Apr 10, 2019 10:36 am

dutchman wrote:The council has yet to find a new tenant for the former Currys warehouse either.


I'm sure O'Boyle has someone lined up, he just can't tell us yet :rolling:
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Re: [Renamed] The closing shop chains thread...

Postby Melisandre » Wed Apr 10, 2019 4:32 pm

StevieG wrote:Leamington seems to be a popular place????


That's because StevieG Leamington people will pay the prices and spend money Coventry people don't hence why my sisters opened their business in Leamington Royal Priors not in Coventry
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Re: The closing shop chains thread...

Postby dutchman » Wed Apr 10, 2019 4:43 pm

The centre of Leamington is starting to suffer as well now, thanks to out of town shopping parks.
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Re: The closing shop chains thread...

Postby rebbonk » Tue Apr 16, 2019 12:53 pm

I think we have a Monsoon...?

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Re: The closing shop chains thread...

Postby dutchman » Tue May 21, 2019 12:18 pm

rebbonk wrote:I think we have a Monsoon...?


It's at Central Six, also Nuneaton and Leamington.
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Re: The closing shop chains thread...

Postby dutchman » Tue May 21, 2019 12:21 pm

I'm sure you'll all be as gutted about this as I am? :rolling:

Jamie Oliver restaurant chains collapse

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Celebrity chef Jamie Oliver has said he is "saddened" after his restaurant group went into administration, putting up to 1,300 jobs at risk.

The group, which includes the Jamie's Italian chain, Barbecoa and Fifteen, has appointed KPMG as administrators.

In total, 25 restaurants are affected by the move, 23 of which are from the Jamie's Italian chain.

Mr Oliver said: "I appreciate how difficult this is for everyone affected."

"I would also like to thank all the customers who have enjoyed and supported us over the last decade, it's been a real pleasure serving you."

He added: "We launched Jamie's Italian in 2008 with the intention of positively disrupting mid-market dining in the UK High Street, with great value and much higher quality ingredients, best-in-class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that."

:bbc_news:
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Re: The closing shop chains thread...

Postby rebbonk » Tue May 21, 2019 5:45 pm

The fat little drummer boy couldn't run a :censored: up in a brewery.

I feel for those that will lose their jobs. - As always though, the workforce pays for managerial incompetence.
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