House of Fraser group in trouble?
Discussion
http://www.guardian.co.uk/business/2009/feb/04/bau...
With the number of brands owned by the Baugur group, the high street are going to look very very empty if the different brands are not bought - surely?!
Only purchasing online in the future, then?
With the number of brands owned by the Baugur group, the high street are going to look very very empty if the different brands are not bought - surely?!
Only purchasing online in the future, then?
k all.CzechItOut said:
You would have thought that retailers like House of Frazer, Goldsmiths Oasis and Karen Millen were profitable in their own right?
I think that has ceased to be the point.ETA, I wonder how hard Philip Green is looking at some of those assets.
Edited by scotal on Wednesday 4th February 13:25
MaxAndRuby said:
TonyHetherington said:
"Now if I was going to give you my children's inheritance"
He's a first class wonker.What sort of an investment banker says things like that?
I reckon he's worth about £50 and just gives it the bigun.
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theo invests in a lot more than ruddy bannatyne who never invests in anything apart from that woman's children's dancing group thing which was just a rip off of something he used to own anyway..!
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They are a shareholder, and not (I believe) a creditor. They have no right to demand anything of the businesses they own parts of, just because they themselves have gone bankrupt. The issue here is really that they may firesale the shares, it turns out no-one wants them, the businesses' values decline and thus covenants on the debt about certain financial ratios involving capitalisation are tripped.
However, these are retailers, not financial institutions - so they do not need minimum capital in which to actually transact business, so capitalisation covenants in their debt are less likely; more likely gearing ratios. There may be P/E ratios etc too, which I suppose are potentially impacted.
I think the real issues for these businesses is not a significant shareholder going bust - it is a decline of spending on the high street. These are cashflow enterprises, using that cashflow to service interest on their debt. If this fails, the debt gets called, and the business is insolvent...
That Guardian article seems ill-informed and rather sensationalist. Doubtless these businesses may fail, and entrepreneurs are looking at them, but it's not all because of Baugur.
However, these are retailers, not financial institutions - so they do not need minimum capital in which to actually transact business, so capitalisation covenants in their debt are less likely; more likely gearing ratios. There may be P/E ratios etc too, which I suppose are potentially impacted.
I think the real issues for these businesses is not a significant shareholder going bust - it is a decline of spending on the high street. These are cashflow enterprises, using that cashflow to service interest on their debt. If this fails, the debt gets called, and the business is insolvent...
That Guardian article seems ill-informed and rather sensationalist. Doubtless these businesses may fail, and entrepreneurs are looking at them, but it's not all because of Baugur.
Edited by Harry Flashman on Wednesday 4th February 14:19
Harry Flashman said:
That Guardian article seems ill-informed and rather sensationalist.
You say that like you're surprised Hal. I think the biggest danger for business at the moment is reputational. how many people will now not purchase from HoF because the Guardian has said they are in trouble.
scotal said:
Harry Flashman said:
That Guardian article seems ill-informed and rather sensationalist.
You say that like you're surprised Hal. I think the biggest danger for business at the moment is reputational. how many people will now not purchase from HoF because the Guardian has said they are in trouble.
Exactly. Their problem is their business model, not their funding/shareholders.
Mind you, picked up some Superdry T-shirts and polos for a tenner each at the city one last week, so no complaints here.
They need to do something about their shop assistants too. Icelandic shareholders? Then I want razor cheeked and full-breasted Icelandic shop assistants too.
I could so turn that store around.
Mind you, picked up some Superdry T-shirts and polos for a tenner each at the city one last week, so no complaints here.
They need to do something about their shop assistants too. Icelandic shareholders? Then I want razor cheeked and full-breasted Icelandic shop assistants too.
I could so turn that store around.
Harry Flashman said:
Exactly. Their problem is their business model, not their funding/shareholders.
Mind you, picked up some Superdry T-shirts and polos for a tenner each at the city one last week, so no complaints here.
They need to do something about their shop assistants too. Icelandic shareholders? Then I want razor cheeked and full-breasted Icelandic shop assistants too.
I could so turn that store around.
Welcome to Flashman's dream high street store, where the in house bistro serves coke in a easten european hookers navel. Mind you, picked up some Superdry T-shirts and polos for a tenner each at the city one last week, so no complaints here.
They need to do something about their shop assistants too. Icelandic shareholders? Then I want razor cheeked and full-breasted Icelandic shop assistants too.
I could so turn that store around.
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