Businesses in financial trouble

[simpsonj]

“You can't give her that!' she screamed. 'It's not safe!'

IT'S A SWORD, said the Hogfather. THEY'RE NOT MEANT TO BE SAFE.

'She's a child!' shouted Crumley.

IT'S EDUCATIONAL.

'What if she cuts herself?'

THAT WILL BE AN IMPORTANT LESSON.”

― Terry Pratchett, Hogfather

[mikeprice]

Mamod the little steam engine people closing its doors for good

 

[ATTACH=CONFIG]72048[/ATTACH]

 

WOW

 

Famous company and product

 

I still have my old one in the garage

and it still works - although I am getting rather worried about the safety of it and insist that the grand kids stay inside if I start it up

 

 

still works fine

 

 

I was considering sending it to the grand-daughter's Science Fair at her school

As she was in Year 6 she wanted something impressive - this would seem to fit the bill

but I though an explosion harming several kids might be sub-optimal

so we went with a RPi controlled robot that she programmed - more boring I reckon but she was impressed!

 

p.s. grand kids are generally not impressed - you have to steer it through the extension onto the wheels

rather than using an App on an iPhone!!!

[mikeprice]

[ATTACH=CONFIG]72052[/ATTACH]

Circular saw attachment for the above. What could possibly go wrong...

 

That reminds me (@mikeprice anecdote coming up), compulsory metalwork classes at school were potentially pretty hairy but somehow we managed not to burn/maim/kill ourselves in the forge/lathes/mills etc.

I'm always grateful as it inspired a lifelong confidence of proper handling of tools and materials, even if we spent weeks learning how to saw and file metal . One project was making a steam turbine using a cocoa tin and soldered bits. Applying too much heat caused the lid to fly upwards causing great excitement and cheering from us and a stern lecture from our teacher, and demonstrated why safety valves are kind of essential...

I'm delighted to see that such a thing still exists! Probably best not to to make one at home, or anywhere really. Definitely not in school.

[ATTACH=CONFIG]72053[/ATTACH]

 

OK OK

 

problem is me and woodwork/metalwork lessons are best not mentioned

 

I was kindof infamous in my year at school for being able to do naff all in them and get away with it

 

I wasn;t actually too bad with the metal - but wood seems to move in mysterious ways when I try to cut or plane it and ends up the wrong shape

 

I do remember making a dice thingy made up of a 6 sided piece of metal with a metal rod through the middle brazed on using a - basically - flamethrower

 

no-one died

 

not even when Brian Pearson had a go!!!!

(wonder what happened to him???)

[6Foot2]

Link: Ted Baker jobs at risk as administrators appointed - BBC News

 

Link: Ted Baker shops shut for good amid doubts over Frasers deal | Business News | Sky News

[6Foot2]

Link: Job losses likely as The Body Shop calls in administrators | Retail industry | The Guardian

 

Link: The Body Shop rescued from administration by Auréa Group - BBC News

 

The Body Shop has been rescued from administration, in a deal that appears to secure the immediate future for 1,300 shop and office workers.

 

A consortium led by the British cosmetics tycoon Mike Jatania has acquired the ethical beauty brand's 113 UK stores which remain trading, for an undisclosed sum.

 

The specialist investment firm Auréa Group will also gain control of the Body Shop's assets in Australia and North America, in a deal which was finalised late on Friday.

 

Mr Jatania described the Body Shop as "a truly iconic brand" popular in over 70 markets around the world.

 

"We plan to focus relentlessly on exceeding their expectations by investing in product innovation and seamless experiences across all of the channels where customers shop," he said.

 

Announcing the deal, Auréa Group said it has "no immediate plans" to shut stores but that it would monitor the footprint of the estate over the coming months as it tries to manage costs.

 

The Body Shop was founded in Brighton in 1976 by the late environmental and human rights campaigner Dame Anita Roddick.

 

What began as a single shop in the seaside town quickly grew into a global brand known for its beauty offer, perfumes and ethical stance against animal testing.

 

Dame Anita and her husband Gordon sold the business to French beauty giant L'Oreal in 2006. Since then it has changed hands twice, including for as much as a reported one billion euros, amid fierce competition from other natural beauty brands like Lush and Rituals.

 

The private equity firm Aurelius paid £207m for The Body Shop in late 2023, but in February this year admitted it could not revive its fortunes and placed the UK arm into administration. It owed more than £276m to creditors at the time.

 

FRP Advisory has since closed 85 stores, while almost 500 shop jobs and at least 270 office roles have been axed.

 

There were more than 75 expressions of interest to take over the ailing chain, reportedly including Next and Marks and Spencer, but after months of negotiations, Auréa announced that it had finally closed the deal.

 

With 35 years of experience in the industry, Mike Jatania will serve as Executive Chairman, it said. The former Chief Executive of Molton Brown, Charles Denton, will take over the helm as CEO.

 

"I am truly excited to lead this brand which I have admired for many years," Mr Denton said.

 

He added that "bold action" would be required to achieve a "sustainable future".

 

Steve Baluchi, Director at FRP Advisory, said the company's "experienced new owners" had a track record of successful retail turnarounds and that they recognised the brand's value.

[6Foot2]

Link: High Street closures led by banks, chemists and pubs - BBC News

 

Pharmacies, pubs and banks made up half of the closures on Britain's High Streets in the first six months of this year, data suggests.

 

A total of 6,945 stores have closed so far in 2024, which is the equivalent of 38 shops per day.

 

However, if you take into account new store openings, there's only a net closure of 12 stores a day, which is slightly higher than the same period last year.

 

On average, 18 chemists, 16 pubs and nine banks shut down every week between January and June - according to research from accountancy firm PwC.

 

But only three convenience stores and one café chain opened in their place, highlighting the huge changes taking place in town centres.

 

Last year saw net store closures of 11 shops a day.

 

Maureen Brewster owns Avoca gift shop in Pershore, Worcestershire which lost a pharmacy and its final bank in the first half of 2024. "At 85 years old it's finally forced me to bank online," she said.

 

"I can't afford, due to fees and taxes, to use our card machine for transactions under £5. So if people can't get cash out of the bank or ATMs it means I lose a sale," she told the BBC.

 

"It's not ideal - it's not good for me or my customers."

 

Having traded in the town for 30 years Ms Brewster has seen lots of change in Pershore which is home to just over 7,000 people.

 

"I think at one stage there were five banks in Pershore," she said.

 

The town now has a temporary banking hub and a Post Office inside Tesco Express. With the help of a colleague, Ms Brewster finally got herself set up with online business banking.

 

But the bigger question for Pershore, and so many other places, is: how to fill the gaps?

 

“The challenge for High Streets is that things like banks, pubs and chemists give people a reason to visit on a regular basis," said Kien Tan, senior retail adviser at PwC.

 

“But there’s also been a long-term shift in doing many things online, so there’s less need for physical locations. And when we do go out, we want to go maybe to somewhere more convenient like a retail park, where we can drive and do all our shopping in one go," he added.

 

In further evidence of bank closures, Lloyds Banking Group said on Thursday it would shut another 55 branches by the end of 2025.

 

The data covers businesses with more than five outlets and includes everything from retail and hospitality to gyms, banks and hairdressers. It does not include independent traders.

 

Although more than 4,600 outlets opened, up from the same period a year ago, it wasn’t enough to make up for the number of businesses that shut.

 

This means more than 2,000 fewer outlets - a slightly bigger decline than the previous year.

 

“We’ve been measuring this for over a decade now and every year there have been more outlets closing than opening and it predominantly affects High Streets. So the reality is that we’re going to have to start thinking of different ways of using and transforming them," said Mr Tan.

 

Winners and losers

 

Chemists led the closures as Boots axed shops and the Lloyds Pharmacy chain disappeared altogether.

 

Convenience stores were the best performing category as supermarkets like Morrisons and Asda opened new outlets.

 

It’s also been a tough first year for takeaways and restaurants. After a year of growth, these categories were hit by dozens of closures as the hospitality sector grapples with higher costs and weaker demand.

 

The one bright spot was retail parks where chains opened more space for the second year in a row with new drive-throughs in big demand.

[Andrew_C]

Studiospares gone. Expect gnashing of teeth from Musics Technology types.

 

Link

Edited September 16, 2024 by Andrew_C

[6Foot2]

Link: Harland and Wolff: Titanic Shipyard to go into administration - BBC News

 

Shipbuilding company Harland and Wolff has confirmed the business is to be placed into administration for the second time in five years.

 

Insolvency practitioners Teneo are being lined up to act as administrators and some "non-core" staff are being made redundant.

 

However, the company’s board said there was a "credible pathway" for its four shipyards to continue trading under new ownership.

 

Its main yard is in Belfast, best known for building the Titanic, with other operations at Appledore in England and Methil and Arnish in Scotland.

 

The company said the administration process will be confined to the holding company, Harland & Wolff Group Holdings plc, and the operational companies which run the yards are expected to continue trading.

 

However, shareholders will see the value of their investments in the business entirely wiped out.

 

Job losses

 

In a statement, the firm said its non-core operations are being wound down.

 

That process had already started with the closure of its Scilly Isles ferry service before sailing had even begun.

 

Other non-core operations include a small business in the US and a marine services business which is to be sold in the hope of preserving 14 jobs.

 

A small number of non-core staff and others in support roles were told Monday they were losing their jobs.

 

The company warned that "a further reduction in headcount in our core activities may be necessary" depending on the progress of the sales process.

 

On Saturday, the firm’s executive chairman, Russell Downs, said the yards "together or separately have a credible future".

 

"We have strong leadership in all of our yards," he added.

 

"We have a strong business case around the work they are currently doing and the work they expect to do in the future.

 

"They have a funding need in the near term but into the future they will be generating cash."

 

Rothschild bank is running the sales process and the company said a number of parties had contacted it to express an interest in acquiring some or all of the yards with a first-round bid deadline due shortly.

 

It is understood that Spain’s state-owned shipbuilder Navantia is interested in the Belfast operation.

 

Navantia is the major partner in the Fleet Solid Support (FSS) programme to build three Royal Navy logistics vessels with Harland and Wolff as subcontractor.

 

Sky News has reported that Babcock International, the UK defence contractor, is also a potential bidder for the Belfast business.

 

Mr Downs told the BBC he hoped to be able to conclude a deal or deals by the end of October.

 

'Alleged misapplication' of funds

 

The company has also given more details of an investigation into the alleged ‘misapplication’ of funds under previous management.

 

Accountants PwC and law firm Simmons and Simmons have been appointed to conduct the investigation.

 

It said Mr Downs took the step in response to concerns raised by customers over "the alleged misapplication of remittances in excess of £25m and certain other lower value matters, such as the disbursement of funds for little or no corporate benefit".

 

The company’s former chief executive, John Woods, told the Financial Times that the allegation of misapplication of funds was “ridiculous".

 

'Thrown into chaos'

 

GMB Union national officer Matt Roberts has said that "workers, their families and whole communities now face their lives being thrown into chaos due to chronic failures in industrial strategy and corporate mismanagement".

 

Mr Roberts said the four Harland & Wolff yards are "needed for our future sovereign capabilities in sectors like renewables and shipbuilding".

 

“The government must now act to ensure no private company is allowed to cherry pick what parts are retained, in terms of which yards or contracts they wish to save," he said.

 

Speaking on Monday, Mr Downs said it is "important to recognise that this is extremely difficult news for the company's staff directly affected and will impact many others within group".

 

"We will work to support our staff through this transition. Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our four yards," he continued.

 

"This will clearly be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years."

[6Foot2]

Link: TGI Friday’s UK future in doubt as owner reveals plan to enter administration | Food & drink industry | The Guardian

 

The company behind the UK arm of the TGI Fridays restaurant chain has said it plans to appoint administrators, putting the future of its 87 outlets and 3,000 employees in doubt.

 

The American diner brand could disappear from UK high streets after Hostmore, which is listed on the London stock market, said administrators from advisory firm Teneo would be appointed and its restaurants sold off to rivals. The restaurants will continue to operate as normal in the interim.

 

Hostmore said the sale – which will complete by the end of October – would generate less than its debts and it was suspending trading of its shares, whose value has fallen to almost zero. The company has debts of £35m.

 

The company has been trying to negotiate a rescue deal ever since £180m takeover talks with TGI Fridays in the US collapsed last week. The merger was scuppered after the main US franchise owner said it had lost the rights to royalties and other payments generated by the TGI Fridays name.

 

An announcement revealing the end to those talks wiped more than 90% off value of Hostmore’s shares.

 

It is unclear whether a suitor could still emerge to take on the TGI Fridays brand in the UK, or if all of its restaurants will be rebranded after they are acquired.

 

Hostmore said its board had “inherited a very challenging set of circumstances” and managed to cut annual spending by £12m, reduce losses from unprofitable stores and improve customer experience.

 

However, the company said: “Unfortunately, all of the board’s efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside the board’s control.

 

Founded in 1965 in New York by a group of friends, TGI Fridays – Thank God It’s Friday – aimed to combine classic American dishes such as burgers with a casual lively atmosphere.

 

It launched in the UK in 1994 and built up a large chain which was taken over by private equity group Electra Partners in 2014. Electra spun out the owner of TGI – Hostmore – in 2021, listing it in London.

[Andrew_C]

On the food front - Tupperware are in trouble.

[6Foot2]

On the food front - Tupperware are in trouble.

 

Medltdown, yoiu might say?

 

[ICTDirect_Dave]

Link: TGI Friday’s UK future in doubt as owner reveals plan to enter administration | Food & drink industry | The Guardian

 

I think in this case maybe reducing how much they charge for some fairly average food would encourage more people through the doors!

Last time we went it cost us £70 and we used the kids eat free promo meaning we only paid for two adults!

[Dos_Box]

I think in this case maybe reducing how much they charge for some fairly average food would encourage more people through the doors!

Last time we went it cost us £70 and we used the kids eat free promo meaning we only paid for two adults!

 

I have to admit, the first time I ate in one was in 1997 (Oxford), and it was very good. I last went into one before lockdown and it was terrible, badly cooked and overpriced.

TBH, I find many independant places offer much better value and food quality these days.

[Arthur]

I think in this case maybe reducing how much they charge for some fairly average food would encourage more people through the doors!

Last time we went it cost us £70 and we used the kids eat free promo meaning we only paid for two adults!

I have to admit, the first time I ate in one was in 1997 (Oxford), and it was very good. I last went into one before lockdown and it was terrible, badly cooked and overpriced.

When a company is purchased by a private equity group, prices almost always go up and quality declines in order to pay off the massive debts from the leveraged buyout.

 

It launched in the UK in 1994 and built up a large chain which was taken over by private equity group Electra Partners in 2014. Electra spun out the owner of TGI – Hostmore – in 2021, listing it in London.

 

[sigma]

I first ate in a TGI Fridays in New York in the late 1980s. It was so good we went back again the next night. So much better than what they served in the UK.

 

It was 5 days from Southampton to New York on the old QE2 and each day was 25 hours to account for the time difference.

[6Foot2]

Link: ISG collapse 'devastating' for construction industry - BBC News

 

The collapse of construction giant ISG is "devastating" for the sector and could lead to other firms going under, the boss of the industry trade body has said.

 

The chief executive of Build UK, Suzannah Nichol, told the BBC’s Today programme that many smaller firms in the supply chain would not now receive money, putting their future at risk.

 

ISG, which holds more than £1bn worth of government contracts, fell into administration last week and 2,200 workers were made redundant with immediate effect.

 

Liam Byrne, chair of the Business Committee, said he was "deeply concerned" at what had happened.

 

ISG, owned by the US firm Cathexis, is the sixth largest construction firm in the UK by turnover, according to the Construction Index, external, with revenues of about £2.2bn.

 

In the past it has built the velodrome for the 2012 London Olympics.

 

The company had been struggling financially for some time but attempts to secure a rescue deal failed.

 

'I'm gutted'

 

Neil Hallsworth from Nottingham has been on ISG’s books as a project manager for more than 15 years.

 

Although he is confident he will find a new role elsewhere, he says he is “gutted” and feels very “raw” after learning he is among the 2,200 workers to lose their jobs at the construction giant.

 

He says there were rumours on Thursday last week that ISG was in trouble, but it wasn't until 4pm on Friday that "we were told, no jobs, no money".

 

“To be told this news after 15 and a half years – and when all the world knows before the employees – it’s absolutely demoralising. I feel extremely let down.

 

“Some of the contractors are owed a fortune.”

 

Construction 'undervalued'

 

In an email to staff last week, ISG chief executive Zoe Price said the current situation had arisen due to "legacy issues" relating to "large loss-making contracts" secured between 2018 and 2020.

 

The company is involved in 69 government projects including work on prison refurbishment for the Ministry of Justice, according to data analysts Barbour ABI.

 

Last week, a government spokesperson said it had already implemented detailed contingency plans, and affected departments were working to ensure sites were safe and secure.

 

ISG's collapse is the most high-profile in the UK's construction sector since Carillion fell into adminstration in 2018.

 

Speaking to the Today programme, Ms Nichol said: "Construction remains undervalued, and people underestimate the cost of construction.

 

"Whilst there have been changes since Carillion six years ago, there clearly has not been enough change.

 

"We know construction runs on very thin margins. You only need one project to go wrong and get delayed and you start to have cashflow issues," she added.

 

"ISG had two major contracts which they started, mobilised and then were stopped by the client and that happens time and time again in construction."

 

Liam Byrne voiced his concern at the news, which he said could now "imperil thousands of jobs".

 

"It’s why we’ve got to transform the quality of UK accounting so it once again provides the early warning system that investors, workers and suppliers deserve."

[FN-GM]

Boots to close 290 stores

 

https://www.express.co.uk/life-style/life/1954182/Boots-store-closures-uk

[Fazza]

Boots to close 290 stores

 

https://www.express.co.uk/life-style/life/1954182/Boots-store-closures-uk

 

They're actually only closing 10 more stores as all the other stores closed in 2023.

[AlistairB1983]

Dobbies Garden Centre are closing 17 stores.

 

Dobbies: Full list of 17 stores earmarked for closure | The Independent

[6Foot2]

Link: Flambards theme park in Helston closes due to rising costs - BBC News

 

A Cornish theme park which opened 48 years ago is closing because of rising costs and falling visitor numbers.

 

Flambards theme park in Helston announced the closure "with immediate effect" on Monday.

 

In a statement on social media, the park's management thanked visitors and staff for their support, and added "Flambards has been a cherished destination for generations and it is with a heavy heart that we bid farewell".

 

The park's indoor play centre, Ferdi’s Funland, would reopen later in November as a standalone attraction, the statement said.

 

Managers said they reached the "difficult decision" after exhausting other options and "fully recognised the impact of this closure on the local community and the sense of loss that it may bring".

 

Problems sourcing parts for older rides and "extensive remedial work" needed on its Victorian village contributed to the decision, the statement said.

 

It said managers would look at options to "preserve and honour" its unique collection, which included vintage aircraft and a Victorian pharmacy which had been preserved as a time capsule, external for nearly 80 years.

 

Saddest day of the week

 

Local MP Andrew George said the "awful" news was the "saddest day of the week", a reference to the theme park's slogan.

 

"After almost half a century, Flambards has been a constant in our lives, for visitor activity, employment, community events and parties."

 

He said the owners had assured him that "redundancies will be kept to a minimum".

 

However, he said that assurance would not "lessen the blow for those who will lose their jobs".

 

'Deep personal memories'

 

Mike Thomas, Cornwall Councillor for Helston North, said he was "very sad indeed" at the closure.

 

"For Helston it’s a place full of memories, going back decades," he said.

 

"It's a place full of deep personal memories and associations.

 

"People will miss it, what else can I say, it'll be an absolute hole in the life of the town."

 

He said he expected the knock-on effect on tourism in the town to be significant, but it was a "time to reflect and be really proud of what Helston has hosted for so many years".

 

Thomas, a former teacher, said many of his former students as well as his own daughter had worked at the park, while his family held a season ticket.

 

He said it was important to preserve the "wonderful Victorian village" and if there was "no chance of a recovery" then the site had "the potential to unlock" future economic development and jobs.

 

Miles Kenchington, Helston's mayor, said the closure was a "very sad day" for the town and he was "so sorry for those people who are going to be without a job coming up to Christmas".

 

He said it was "quite a worrying time" for tourism.

 

"We're not getting so many people coming in now and the impact is going to be significant for the whole of Cornwall.

 

"Tourism is a major part of our income as a county."

 

He said he used to visit the "iconic theme park" in the 1970s when it was called Cornwall Aero Park and took his children in the 1990s and 2000s.

 

"My grandson was there at the weekend with his parents and had his first - and now his last - log flume ride because he'd reached the minimum height," he added.

 

Flambards opened in 1976 as Cornwall Aircraft Park and soon became the Aero Park before expanding during the 1970s and 1980s to add rides, a Britain in the Blitz exhibition and a Victorian village.

 

The park later rebranded as Flambards, named after a popular television period drama, to reflect its widened offering.

 

It had a number of outdoor rides and earlier this year announced several would not be operating for the season, including Thunderbolt, Sky Swinger, Sky Force and the Hornet Rollercoaster.

 

Its announcement follows the recent closure of another Cornish attraction Dairyland, and Dingles vintage fairground museum on the Devon and Cornwall border which closed for the final time last week.

[Andrew_C]

HOMEBASE!!

Homebase has collapsed into administration, putting 2,000 jobs at risk.

 

Its owner Hilco had been looking to sell the struggling retailer, but has not managed to find an outright buyer.

 

Homeware chain The Range is buying up to 75 stores and the brand, safeguarding about 1,600 jobs.

 

But this leaves 49 stores without a buyer, and thousands of jobs at risk in the stores and head office.

[Norphy]

I'm not surprised. The Homebase in Dumfries is utter garbage. Expensive, sparsely stocked, understaffed. If you want anything DIY related in this town, you have to go to Wickes, Toolstation or Screwfix.

[LeMarchand]

The Homebase stores near me are all in areas I generally never go to. Been meaning to pick up some storage boxes they have on offer. Wonder if they'll go up or down in price with this news?

[smurfomatic]

All the Homebase stores near me have already closed, last time I went there was only because what I wanted was on sale, so cheaper than wickes

[6Foot2]

Typhoo's in hot water, as it's not everyone's cup of tea now...

 

Link: Typhoo Tea teeters on the brink of administration - BBC News

 

Typhoo Tea is set to appoint administrators as the 120-year old brand's sales slump, losses widen and debts rise.

 

The company has filed a notice at court "which affords the company some breathing space to explore solutions", Typhoo's chief executive Dave McNulty told the BBC.

 

The firm has been trying to turn itself around for some time.

 

However, it suffered a setback after trespassers damaged its former factory in Moreton, Merseyside in August followed by a fire at the same plant in October.

 

"Given the delicate nature of this we are not in a position to comment any further," said McNulty.

 

Typhoo has reportedly appointed accountancy firm EY to handle the administration.

 

The company's losses widened to £38m from £9.6m in the year to the end of September 2023, which are the most recent results available. Sales fell to to £25.3m from £33.7m.

 

'Extensive damage'

 

The results also revealed £24.1m worth of "exceptional costs", some of which relates to the break-in at the Moreton plant, which was shut down last year.

 

Typhoo said: "During August, a group of organised trespassers broke into the Moreton site and occupied it for several days."

 

It added that the trespassers caused "extensive damage" and made the site "inaccessible".

 

It said a lot of tea was rendered unusable and it was unable to fulfil some orders to customers.

 

Not reflected in the results were the impact of a fire in October at the same Moreton plant.

 

Local fire services told local publication Wirral Globe that the fire broke out on 1 October, with firefighters working throughout the night to put the blaze out.

 

Typhoo Tea was founded in 1903 and is widely seen as one of the UK's main tea brands, alongside the likes of PG Tips, Tetley's and Yorkshire Tea.

Edited November 15, 2024 by 6Foot2
Formatting. :(