Bye Bye BHS and Austin Reed?
Discussion
CooperD said:
I thought Austin Reeds had closed down years ago. I can't remember seeing one their shops in ages. Very surprised to find out they were still going.
I can't say I'm surprised. I went into both Austin Reed and Moss Bros when deciding on suit hire for my imminent wedding. Moss have the market sewn up (sorry!). Much more selection and more modern suits, and very flexible to the customer in terms of what you hire and getting measured etc.TankRizzo said:
ukbabz said:
£101million profit last year (2015) according to Wikipedia - https://en.wikipedia.org/wiki/WHSmith
Amazing, what do they do that other, more efficient, firms don't?The recently announced deal that post office branches will be moving in to a number of their stores is a bonus and would expect them to increase profits on the back of that.
There was a BHS at Fosse Park, Leics until last year. It closed, was part demolished and is now a Primark.
We used to take a short cut through it to stay out of the rain, but it was always relatively deserted - the most populated part of it was the cafe upstairs.
One thing I remember though was that all the clothes were just a sea of either pink or blue, and I said on many occasions, just how long can this place last.
We used to take a short cut through it to stay out of the rain, but it was always relatively deserted - the most populated part of it was the cafe upstairs.
One thing I remember though was that all the clothes were just a sea of either pink or blue, and I said on many occasions, just how long can this place last.
Edited by Cobnapint on Monday 25th April 15:33
TankRizzo said:
INWB said:
My money would be on Debenhams.
I think they're actually doing alright, aren't they? Seem to remember seeing stories about good performance recently.Fenwick's springs to mind as a stuck in the mud outlet though...
Austin Reed literally saved my arse once.
Was heading to a meeting in Edinburgh and as some kind rig pig pointed out at Stonehaven station, I had "blown the arse oot of ma troosers".
Thankfully was staying over the night so had pair of jeans in bag, quick change in train toilet then straight up to George St in Edinburgh to try to source alternative trousers. Only place I could get finished hem trousers was Austin Reed. Saved the day!
Never been back nor wore the trousers again - probably explains why they have gone pop!
Was heading to a meeting in Edinburgh and as some kind rig pig pointed out at Stonehaven station, I had "blown the arse oot of ma troosers".
Thankfully was staying over the night so had pair of jeans in bag, quick change in train toilet then straight up to George St in Edinburgh to try to source alternative trousers. Only place I could get finished hem trousers was Austin Reed. Saved the day!
Never been back nor wore the trousers again - probably explains why they have gone pop!
emicen said:
Out of curiosity, what do you perceive their inefficiencies to be?
The recently announced deal that post office branches will be moving in to a number of their stores is a bonus and would expect them to increase profits on the back of that.
Yeah, I think 'efficient' was probably the incorrect word. The recently announced deal that post office branches will be moving in to a number of their stores is a bonus and would expect them to increase profits on the back of that.
I'm just not sure why people would go there these days, everything can be purchased elsewhere for cheaper.
TankRizzo said:
I'm just not sure why people would go there these days, everything can be purchased elsewhere for cheaper.
I haven't looked at them for a while but I believe, the jewel in their crown is the "Travel" division.This means hundreds of stores (IIRC) at stations and in airports etc... (as well as a very fast growing international bit).
You have effectively "trapped" customers making a convenience (i.e. non price sensitive) purchase.
These are growing nicely.
Their high street stores aren't doing so well although they remain very profitable. Again these are convenience lead rather than competing with say Amazon.
Their cost cutting has been amazing and their old CEO Kate Swann was a legend because of it.
TankRizzo said:
ukbabz said:
£101million profit last year (2015) according to Wikipedia - https://en.wikipedia.org/wiki/WHSmith
Amazing, what do they do that other, more efficient, firms don't?I'm rather surprised that Austin Reed has managed to go bust given several other firms like Pinks, TM Lewin and Charles Tyrwhitt seem to have been expanding their high street presence considerably over the last ten or fifteen years. Seems a bit odd to just concede market share and allow your brand to atrophy while several other firms seem to be making hay. Anyone know the background?
Murph7355 said:
jonah35 said:
The pension issue is unfair. Liabilities paid for by you and me.
Not directly as I understand it.Depending on the type of pension I believe protection comes either via the FSCS (Defined Contribution) or the Pension Protection Fund (Defined Benefit). These are ultimately funded by the institutions providing the schemes, so those providers will no doubt be loading everyone's pension payments to cover this "insurance", but it's something "man in the street" won't really see.
The people who work there may get a reduced pension, though how reduced will depend on their circumstances. I doubt there will be too many significantly worse off as I doubt there'll have been many BHS workers with huge pension pots tbh.
The taxpayer is unlikely to be hit materially ref pension payments specifically, I would think, as a result.
Perhaps companies didn't ought to be allowed to run a deficit at all. But then I think there have been many factors at play on that front over the decades. It's not all the usual pariahs' (the wealthy business owners) fault...
As for BHS, I went in 5yrs ago as someone kindly gave us vouchers for there for our wedding...no need to ever go back in since. Adapt or die. They didn't and did.
I quite liked Austin Reed for somethings. Problem is they had nothing you couldn't get elsewhere, and I suspect the demographic is such that people rarely buy anything (if I'm anything to by!) as clothes like they sell are aren't top of my priority list.
BHS had its day years ago really didn't it? Last one I went into was in Bath, dragged in by the missus looking for "stocking fillers" (cheap boxing day landfill tat). It was gloomy, badly organised, old fashioned and full of crappy products. It's now a Primark. The difference, I guess, is that now it sells cheap modern tat, instead of not very cheap old fashioned tat.
I'm sure they haven't been managed brilliantly but also, s
t as it is for the staff, it's 2016 and maybe there simply isn't a need for so many "just another department stores" on the high street between M&S, BHS, Matalan, Primark, H&M and so on.
If it wasn't BHS it would be another one.
t as it is for the staff, it's 2016 and maybe there simply isn't a need for so many "just another department stores" on the high street between M&S, BHS, Matalan, Primark, H&M and so on.If it wasn't BHS it would be another one.
Cobnapint said:
TankRizzo said:
INWB said:
My money would be on Debenhams.
I think they're actually doing alright, aren't they? Seem to remember seeing stories about good performance recently.Some of their stores must cost a fortune to rent but they have a LOT of concessions which I'm sure must help.
Interestingly all of their lighting is BHS Lighting, from what I gather that will be spun off because it's very successful.
Edited by Gareth79 on Monday 25th April 18:36
BHS paid more than £25m to owner in 13 months before administration
http://gu.com/p/4tjvn?
http://gu.com/p/4tjvn?
article said:
Sources with knowledge of BHS’s finances say that the payments to Retail Acquisitions included £2.8m in management fees, £2.1m in salaries and wages, £11m in legal and professional fees and £10m in interest payments.
The man behind Retail Acquisitions is Dominic Chappell, a former racing driver who has been declared bankrupt twice. Chappell owns 90% of Retail Acquisitions, which bought BHS for £1 from Sir Philip Green in March 2015.
Hmmmm. The man behind Retail Acquisitions is Dominic Chappell, a former racing driver who has been declared bankrupt twice. Chappell owns 90% of Retail Acquisitions, which bought BHS for £1 from Sir Philip Green in March 2015.
FiF said:
BHS paid more than £25m to owner in 13 months before administration
http://gu.com/p/4tjvn?
I don't think the attraction was 'retail' per se, more the property portfolio. I think they even cocked that up !!http://gu.com/p/4tjvn?
article said:
Sources with knowledge of BHS’s finances say that the payments to Retail Acquisitions included £2.8m in management fees, £2.1m in salaries and wages, £11m in legal and professional fees and £10m in interest payments.
The man behind Retail Acquisitions is Dominic Chappell, a former racing driver who has been declared bankrupt twice. Chappell owns 90% of Retail Acquisitions, which bought BHS for £1 from Sir Philip Green in March 2015.
Hmmmm. The man behind Retail Acquisitions is Dominic Chappell, a former racing driver who has been declared bankrupt twice. Chappell owns 90% of Retail Acquisitions, which bought BHS for £1 from Sir Philip Green in March 2015.
miniman said:
BHS had its day years ago really didn't it? Last one I went into was in Bath, dragged in by the missus looking for "stocking fillers" (cheap boxing day landfill tat). It was gloomy, badly organised, old fashioned and full of crappy products.
The only time I ever go into BHS is at Christmas, but even then all the stuff they sell is trash, and everyone else I know says much the same thing.I have never heard of anyone say they buy clothes at BHS, which is supposedly their main line of business.
As you say, it's a wonder they lasted this long, and should have closed down years ago.
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