Retailers prepared for failure

[Sysman]

High Street shops to launch biggest ever pre-Christmas sales

Shops will embark on their biggest ever pre-Christmas sales in a desperate bid to raise cash in the last 48 hours before December 25.

It's all about cash flow. Lack of that is the primary cause of bankruptcies,

[BrilloPad]

Aren't Starbucks in big danger? Seems to me they're big in all the places hit hard by the credit bubble collapsing.

Round the city they still look busy to me.

But apparently margins are wafer thin as rents are so high.

[MrMark]

Aren't Starbucks in big danger? Seems to me they're big in all the places hit hard by the credit bubble collapsing.

[BrilloPad]

Whittard of Chelsea on brink of administration

http://www.telegraph.co.uk/finance/n...istration.html

[MarillionFan]

Its not been a good xmas. I'm below my worst expectations and the New Year is only going to get tougher.

[AtW]

AtW, you love monolithic organisation, don't you.

I like competition, but part of that is some players going bust to make space for others to earn decent money to pay for R&D etc. If they can't make money they will keep prices higher up (how do you think they get 50-70% "sales"?), rip off store cards, exploitation of labour in 3rd world etc.

[Mich the Tester]

Another reason to give cash I guess.

Or real presents, like books.

[BrilloPad]

A good point. My kids have received W H Smith, Waterstones and HMV vouchers from various relatives. Better get them down the shops pretty quick I guess.

Another reason to give cash I guess.

[Doggy Styles]

There are too many retailers - this makes it hard for everyone to make decent money.

AtW, you love monolithic organisation, don't you.

[AtW]

There are too many retailers - this makes it hard for everyone to make decent money.

[SantaClaus]

Top Tip:

Spend your (insert any high street name here) vouchers as soon as you get them, you may find they’re worth even less than the currency they were bought with when the shop ceases to exist.

Wow, I never thought of that
Better get down the shops.

[dang65]

Top Tip:

Spend your (insert any high street name here) vouchers as soon as you get them, you may find they’re worth even less than the currency they were bought with when the shop ceases to exist.

A good point. My kids have received W H Smith, Waterstones and HMV vouchers from various relatives. Better get them down the shops pretty quick I guess.

[gingerjedi]

Top Tip:

Spend your (insert any high street name here) vouchers as soon as you get them, you may find they’re worth even less than the currency they were bought with when the shop ceases to exist.

[Purple Dalek]

So they'll fail before the new year to avoid the new transparency rules?

Or after the new year as the 'transparency' rules are actually a good way of hiding stuff a la freedom of information act?

[DiscoStu]

http://www.telegraph.co.uk/finance/n...retailers.html

Pre-packs ready for failing retailers

Accountancy firms are believed to have at least 15 large so-called pre-pack administrations lined up for January as the economy continues to falter.

By Helia Ebrahimi and James Hall
Last Updated: 7:24AM GMT 22 Dec 2008

The new year is set to kick-off with a raft of high profile companies changing hands. Top accountancy firms are already believed to be working on over a dozen controversial pre-pack deals, a number of which are in the retail sector.

Pre-packaged administrations enable a company to prepare for administration and to swiftly be bought by new owners. These new owners can be the directors of the former company, with reduced liabilities which often leaves creditors out of pocket.

Deloitte and PricewaterhouseCoopers are thought the be among a handful of accountancy firms working on a number of administrations already, some of which are thought to be pre-packs. Over the weekend Begbies Traynor, the insolvency expert, predicted that up to 15 chains will collapse by mid-January. Retailers have had a terrible December. Sales have fallen sharply and the chains are due to pay their quarterly rent bills at the end of this week. Many are expected to fail.

Pre-packs have been criticised for giving the impression of a company failing one day and then operating the next. New rules come into effect on January 1 to make the process more transparent. In future the administrator of a pre-pack will have to reveal to creditors information such as how they were appointed and any connection between the purchaser and the directors, shareholders or secured creditors of the company.