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Businesses in financial trouble

fiza

By fiza
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mikeprice

mikeprice

Posted
Posted
Hertz files for bankruptcy protection

 

 

 

$17 billion in debt is insane.

 

All the car rental companies must be in trouble. WHen I go cycling I sometimes cycle through Liverpool airport because it is weird cycling through a big (ish) airport which is totally silent

Anyway - the car rental place is full of rental cars that haven't moved since all this started - and there are a LOT of cars there

 

places like Manchester and Gatwick must be even worse

mavhc

mavhc

Posted
Posted

$17 billion isn't that insane when you have $1 billion cash and x vehicles.

 

"As of 2018, the company had revenues of US$9.5 billion, assets of US$21.3 billion"

 

Filing for bankruptcy is often a way to avoid paying some things, doesn't actually mean you have no assets.

mikeprice

mikeprice

Posted
Posted

I suppose you also have to remember that car hire companies are not really car hire companies

 

I saw (or read) something a while ago showing how these companies buy the cars at a huge discount - keep them for a short while - then sell them on as used

but they often get more for them when they sell them that they cost

 

The car hire business is just to keep the car running and pay for the admin and running costs of the company in the meantime - and to make sure the cars are legally used rather than new

which means they are not subject to VAT at on resale

 

Economics are weird like that

 

 

so they might not be in the terrible shape that it appears

mavhc

mavhc

Posted
Posted

Yeah, pretty sure there's a whole Channel Islands VAT dodge going on wrt car hire. Buy car new, with no vat, sell car used on mainland, with only selling price VAT

 

We need a new thread: Businesses not in financial trouble

  • 4 weeks later...
Arthur

Arthur

Posted
Posted

Poundstretcher could close more than half its UK stores

 

Poundstretcher is considering closing more than half of its UK stores as part of a survival plan.

 

Up to 253 shops are at risk of closure if landlords do not agree to rent cuts or holidays, the discount retailer said.

 

A spokesperson said that the talks form part of a wider restructuring plan aimed at "stemming losses" from underperforming stores.

 

It employs 5,500 people across 450 shops, its warehouse and head office.

 

Poundstretcher, which also owns the Bargain Buys chain, has launched a company voluntary arrangement (CVA), an insolvency process that allows companies to continue trading while pushing through closures and rent cuts.

 

It will be overseen by the accountancy firm KPMG.

 

Under the proposals, 253 stores will pay full rent for an initial period of six weeks, "after which continued trading will depend on the commercial merits of each store with the relevant landlords' collaboration", KPMG said in a statement.

 

The CVA also proposes slashing rents for another 84 shops by up to 40% for a period of three years.

 

A further 23 stores could also shut as Poundstretcher plans to put a subsidiary group that owns them into administration before the deadline for voting on the plans.

 

^ If you have watched the Channel 4 series Saving Poundstretcher this shouldn't come as too much of a surprise.

 

They are poorly run with huge amounts of unwanted stock just sitting in their stores and warehouse (e.g. Pontefract cakes) and hired Chris Edwards to turn around the business, ignored his advice and then fired him.

Arthur

Arthur

Posted
Posted

One more...

 

2500 jobs on the line as Travis Perkins shuts down 165 stores

 

Around 2500 workers are set to lose their jobs at builders’ merchant and hardware retailer Travis Perkins amid plans to shut down 165 stores.

 

The company, which also owns DIY chains Toolstation and Wickes, said the decision comes as it expects a recession to hit the sector for at least two years.

 

Bosses said the plans to close down 165 stores will mainly focus on smaller Travis Perkins sites.

 

However, they also said there were encouraging signs that building work is returning now that the UK is gradually coming out of lockdown.

 

“Whilst we have experienced improving trends more recently, we do not expect a return to pre-Covid trading conditions for some time and consequently we have had to take the very difficult decision to begin consultations on the closure of selected branches and to reduce our workforce to ensure we can protect the Group as a whole,” Travis Perkins chief executive Nick Roberts said.

 

“This is in no way a reflection on those employees impacted and we will do everything we can to support them during this process.”

 

An increasing number of businesses across various sectors are concerned that an impending recession will be the harshest in living memory and will take years to recover from.

 

Economists and experts also predict the unemployment rate could return to levels not seen since the 1980s.

 

“While there has been a significant recovery in trading volumes in recent weeks, it is evident that the UK is facing a recession and this will have a corresponding impact on the demand for building materials during 2020 and 2021,” Travis Perkins stated.

LeMarchand

LeMarchand

Posted
Posted
They are poorly run with huge amounts of unwanted stock just sitting in their stores and warehouse (e.g. Pontefract cakes) and hired Chris Edwards to turn around the business, ignored his advice and then fired him.

 

To be fair, Poundworld did go bust under Chris Edwards. I actually thought Poundstretcher were already gone - I think I was thinking of Poundworld.

paulkerton

paulkerton

Posted
Posted
To be fair, Poundworld did go bust under Chris Edwards. I actually thought Poundstretcher were already gone - I think I was thinking of Poundworld.

Its a bit complicated. Poundworld were sold to an investment company, but the Edwards family were still running it day to day nominally, whilst starting their new company Bargain Buys.

Bargain Buys then purchased the Poundworld name and stores from the receivers.

Poundstretcher then buys Bargain Buys

Poundstretcher then bring in Chris Edwards to shore up their company when they start struggling.

 

It's quite an intertwined weird mess that bunch of companies.

paulkerton

paulkerton

Posted
Posted
All pound shops have the fundamental problem of inflation being a thing that exists

 

To paraphrase a famous movie:That's what they love about these Asian workers, man. They get cheaper, products stay the same price. :D

LeMarchand

LeMarchand

Posted
Posted
To paraphrase a famous movie:That's what they love about these Asian workers, man. They get cheaper, products stay the same price. :D

 

Also: smaller pack sizes (5 batteries rather than 6) etc and Poundland is now "mainly" everything for a pound.

mikeprice

mikeprice

Posted
Posted
To paraphrase a famous movie:That's what they love about these Asian workers, man. They get cheaper, products stay the same price. :D

 

Sort of - when they started they were "50p" stores - but that was before they became big

 

maybe they will become "2quid" shops - but it doesn't have the same ring

ICTDirect_Dave

ICTDirect_Dave

Posted
Posted
Yeah right. We are all dim enough to buy walking boots online.

 

Or buy a proper tent without first going to take a look at it.

 

Outdoor stores aren't something you want to visit often, but I'd consider most of the stuff they sell as something I'd like to get my hands on before buying.

  • Thanks 1
Zammo

Zammo

Posted
Posted
Or buy a proper tent without first going to take a look at it.

 

Outdoor stores aren't something you want to visit often, but I'd consider most of the stuff they sell as something I'd like to get my hands on before buying.

 

Exactly!

 

Go Outdoors will genuinely be missed. Not always the cheapest, but not rip off merchants like some other outdoor/hiking/climbing/walking outlets

  • Thanks 1
FN-GM

FN-GM

Posted
Posted
Shame that, If they could just hang on a while I suspect there will be a boom in camping gear demand.

 

I agree. When 9/11 happened there was a huge spike in camping stuff. There was quite a large waiting list for new caravans.

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