Businesses in financial trouble

[Disease]

We have next to no Stores left in our main high street in Portsmouth, Only things like Primarni, Boots and TK Max, the rest are Banks, mobile phones shops, Fast Food and Vape Shops and cheap shoe stores.

[Andrew_C]

You've got a bank?!

 

The Wilko near my folks was never what you would call busy. Doing some trade, but not surprised it isn't sustainable.

[elsiegee40]

HSBC, closed last week in Tonbridge. TSB, Barclays and NatWest all closed their doors before it. Businesses in the town are having real problems with banking.

 

We have had no main post office for over a year. It moved into WH Smith then then WH Smith closed within a few months.

 

A temporary post office counter is, in theory, open at the council offices at the castle, but is often closed due to staffing issues and doesn’t offer even close to the full range of services. The post office says it can’t find a suitable premises despite the many empty shop and bank units

[HarryMonkey]

I go into town for (basically) two things ... Specsavers and haircut. There's nothing there for me. I can get most of what I want at the out of town retail park(s), including Wilko.

Interestingly our local council has just introduced 4 hours free parking each day in order to encourage people back into the town centre.

[FN-GM]

I go into town for (basically) two things ... Specsavers and haircut. There's nothing there for me. I can get most of what I want at the out of town retail park(s), including Wilko.

Interestingly our local council has just introduced 4 hours free parking each day in order to encourage people back into the town centre.

 

Postage in Australia is slow and expensive. Retail is still doing really well! I am convinced this is why online shopping hasn't taken over here.

[mikeprice]

In Widnes they have been cunning and put an "out of town" shopping park on the back of the High Street - with an alley between them

 

Hence it is easy to park in the "out of town" bit and have access to places like Next, M&S, River Island, Poundstretcher and .... Wilco

 

Then you can walk through the alley to the old High Street easily

the market is also at the far end of the High Street

 

so they have managed to extend the life of the high street by giving an incentive to the big stores to be right next to it

 

Probably the one and only sensible town planning thing I have seen around here - anyone trying to figure out "The gyratory" ends up wondering what they must have been smoking when they came up with the plan!!!

 

but the High STreet bit is brilliant!

 

I suspect Wilco will be one of the last to go because it is right by the start of teh alley - hence loads of passing trade!

[LeMarchand]

It's happened : https://www.independent.co.uk/news/uk/home-news/wilko-adminstration-jobs-high-street-b2390776.html

[LeMarchand]

Went into our local Wilko yesterday (it has the best value/scents for its washing up liquid and antiseptic wipes). I'm not sure if it's lack of incoming stock or panic buying, but many of the shelves were looking pretty sparse - though they hadn't started any sort of closing down sale.

[ZeroHour]

There is a tendency to send back any stock they can get refunds for when going out of business so shelves could be emptier because of that as well.

[36Degrees]

I go into town for (basically) two things ... Specsavers and haircut.

 

Pretty much the same for me - opticians (every 2 years) and dentist (every 6 months). I'm not sure I would even think about going to Wilkos anymore - if it isn't in either of the 2 B&Ms we have, Home Bargains or The Range I'd probably resort to Amazon or eBay.

 

Our town has been dying by a "death of a thousand cuts" for quite some time, aided and abetted by our local councils, but it's now accelerating. Both Barclays and TSB closed recently leaving 2 large buildings empty that have been banks as far back as I can remember.

[Arthur]

The Range buys Wilko brand in multimillion-pound deal

 

The homeware retail chain The Range has struck a multimillion-pound deal to buy the Wilko brand as administrators sell off the remnants of the 93-year-old retailer.

 

PwC has been selling off parts of Wilko, founded in 1930 by JK Wilkinson in Leicester, after the chain went into administration last month, putting more than 12,000 jobs at risk.

 

The Range, which operates 210 stores in the UK and Ireland, has acquired the Wilko brand and intellectual property rights but has not bought any of the stricken retailer’s stores. Sky reported the deal to be worth £5m.

 

On Tuesday, Poundland, owned by Pepco, struck a deal to acquire up to 71 Wilko sites that it intends to reopen under its own brand in a deal which could throw a lifeline to some of the 1,800 staff who will lose jobs connected with those outlets.

 

PwC indicated Wilko employees would be offered the opportunity to work at the new Poundland branches, although it is not clear how many roles will be available.

 

Last week, PwC announced a £13m agreement with the discount retailer B&M to buy up to 51 Wilko properties that will also be rebranded, but the deal did not include a jobs guarantee.

 

Continues...

[LeMarchand]

Popped into our local one a few days ago, which was virtually stripped. Amazingly it's not one on the current closure waves, but I can't imagine that it will be becoming a B&M as their branch is <100 yards away and of a similar size/position. Poundland might be a possibility, but there used to be two in town and the larger one (not as large as the Wilko site) threw in the towel.

 

Apparently some of the staff are getting abuse over lack of stock and that the prices aren't low enough for the vultures .

[6Foot2]

... Apparently some of the staff are getting abuse over lack of stock and that the prices aren't low enough for the vultures .

Amazing. Despite the company's difficulties, they have to try to maximize the return they get on the current stock (they aren't going to be giving it away) The other side of that is times are hard. Nevertheless, that doesn't excuse such behaviour.

[6Foot2]

The (other) Scunthorpe problem:

 

Link 1: Club update - News - Scunthorpe United

 

The club Owner and Chairman has recently notified the Board of Directors of his decision to withdraw his funding from the club moving forward.

 

He has also notified them that he feels his position at the club is untenable, and is actively seeking a way out. Based on this information, both Ian Dawson and Tahina Akther have decided to resign from their positions with immediate affect.

 

We can confirm that numerous parties have made contact with the club with a view to taking over, but faced with stadium issues, numerous litigation proceedings and winding up petitions no potential purchasers are looking to move forward. This includes the consortium of local business people and supporters....

 

Link 2: Scunthorpe United kicked out of Glanford Park as FA investigates chairman | ITV News Calendar

[smurfomatic]

Another "professional" English rugby club goes out of business:

 

https://www.bbc.co.uk/sport/rugby-union/66946536

 

After three Premiership clubs folded in the last twelve months, it's now affecting the Championship too.

[6Foot2]

Wilco update:

 

Link: Wilko back online from today under new owner | News | The Grocer

 

Wilko is back online from today under new owner The Range, which bought the collapsed discount chain’s e-commerce operation from administrators last month.

 

Products across cleaning and household, decorating and DIY, garden and outdoor, homeware, pets and wildlife, storage and festive celebrations are available to order for home delivery at Wilko.com.

 

The assortment has been made available using The Range’s third-party marketplace model, which also allows external suppliers to sell on its own website.

 

Hundreds of new lines and own brand products will be added daily as the site builds, along with a next-day delivery option, according to the retailer.

 

The Range said shoppers would also begin to see Wilko branded products appear in its stores nationwide towards the end of October.

 

Wilko fell into administration in August, leading to the loss of about 12,000 jobs after administrators at PwC were unable to find a rescuer for a significant part of the business.

 

The Range’s acquisition of Wilko’s brand and online operation saved the jobs of 36 digital team members who transferred to the homeware retailer founded by Chris Dawson.

 

“There’s no denying that it was the team members and local store network that helped make Wilko so special. The loss of thousands of jobs as stores closed up and down the country has been devastating,” said Wilko chief digital officer Ben Exall.

 

“Following the acquisition of the Wilko brand and website by The Range, what we’re working towards here is an opportunity to save an important part of the Wilko brand that people know, love and trust, and to represent that on Wilko.com, where both new and loyal hardworking families will be able to find great value products to meet their everyday household and garden needs.

 

“As a team delivering the digital transformation at Wilko.com, we’re committed to continuing the three pillars of the brand’s previous acceleration strategy – delivering on convenience, improving mobile experience and building lasting customer relationships.”

 

The Range CEO Alex Simpkin said: “For 93 years, Wilko has been a fixture of many British households, synonymous for its breadth of products offering great quality value. It was important to us that the brand had a future.

 

“Using our online and digital expertise, our intention is to continue to offer the best of Wilko brands and products alongside a breadth of household brands to its loyal customers who we hope will be happy to see this trusted brand live on.”

[6Foot2]

NOTE: Not a political post: No political replies are expected, nor are they invited.

 

Link: Ofwat warns over financial health of four water suppliers in England | Water industry | The Guardian

 

Thames Water and Southern Water among firms urged to take action to secure long-term finances

 

The water regulator for England and Wales has raised a red flag over the financial health of companies responsible for supplying to more than 20 million customers in the south-east of England amid growing public anger over the industry’s record on services and pollution.

 

Ofwat’s latest report on the financial resilience of the sector again named Thames Water, Southern Water and SES (Sutton and East Surrey) Water as companies that needed to take action to shore up their long-term finances.

 

The regulator also raised concerns over the financial health of South East Water, which has 2.2 million customers, adding it to its “requires action” category for companies that have the lowest scores for financial resilience in the industry.

 

The decision to include South East Water alongside Thames, Southern and SES means the company will be subjected to extra scrutiny from the regulator. This year it emerged that South East spent more on dividends and servicing its debt pile over the past two years than investing in infrastructure.

 

It spent £232m on distributing dividends and paying interest on its debts in the two years to March 2022, according to a research by the University of Greenwich, compared with investments of £179.8m in upgrading infrastructure – from replacing pipes to improving water supplies.

 

The company, which serves customers in Kent, Sussex, Berkshire and Surrey, came under fire over the summer when 6,000 households were left without running water for up to a week. It implemented a hosepipe ban and blamed increased working from home for growing demand.

 

Ofwat said it moved South East Water into its “requires action” category to reflect the “increased financial pressures, which sit alongside a weakening in operational performance”.

 

David Black, the regulator’s chief executive, said: “We expect companies to maintain a level of financial headroom so they can manage periods of volatility and meet their obligations to customers and the environment.”

 

He added: “Where we have seen cause for concern, we have also seen some companies responding to the challenge, and we expect them to continue to work on improving their financial resilience.

 

“This is particularly notable in the cases of Yorkshire Water and Portsmouth Water, which last year we had categorised as requiring action. They have taken clear actions and this year have been moved out of our bottom category. We expect to see more companies following this trend and will continue to closely monitor their progress.”

[6Foot2]

The Range buys Wilko brand in multimillion-pound deal ...

 

Link: Wilko shops set to return to the High Street before Christmas - BBC News

 

Wilko will return to the High Street, with the brand's new owner opening up to five shops before Christmas.

 

The owner of the Range, which also bought Wilko's website after its collapse, will launch the first two Wilko shops in Plymouth and Exeter.

 

Its boss said that "it's clear that there's a huge love for Wilko".

 

Wilko collapsed in early August, leading to thousands of job losses and the closure of its 408 stores, many of them in traditional town centres.

 

CDS Superstores, which owns The Range, said former Wilko staff would be given priority in the recruitment process for the new shops.

 

Its chief executive Alex Simpkin said: "The public reaction to the loss of Wilko stores was undeniable.

 

"That's why we've taken the decision to reintroduce Wilko back to many of the High Streets and communities that it used to so proudly serve."

 

While these High Street locations are convenient for shoppers without cars, since the pandemic there's been a shift to bigger retail parks and out-of-town options with more space.

 

This as well as Wilko's struggle to keep up with competition from other discount retailers, including The Range, B&M and Poundland was blamed for its collapse.

 

CDS Superstores is aiming to opening up to five Wilko shops before Christmas, with two leases signed already for High Street locations in Devon.

 

They will be "concept" stores, followed by two locations in the South-East of England and one in the North of England, which are expected to be announced soon.

 

For the first time, it is also planning to open Wilko-branded shops in Northern Ireland.

 

Wilko was founded in 1930 when JK Wilkinson opened his first store in Leicester. It expanded across the Midlands initially and by the 1990s became one of Britain's fastest-growing retailers.

 

But after the firm collapsed into administration, other competitors like B&M and Poundland snapped up dozens of shops to operate under their own names.

 

The owner of The Range agreed to buy the Wilko brand in a deal worth £5m, after a separate rescue bid for the wider business fell through.

 

A mixture of former Wilko sites and new ones are being considered for the new shops launched by CDS Superstores, with negotiations currently going on with landlords.

 

All of the five shops it is hoping to open before Christmas are expected to be quite different - some single-level, other split-level and an out-of-town retail park reportedly on the cards. They will not be "pop-up" stores, but a permanent fixture.

 

CDS said the new shops will offer Wilko products from cleaning and households ranges, to DIY and household goods.

 

In a statement on Friday, the firm said that the roll-out will carry on through next year, and it is understood that it is hoping to open hundreds of shops within the next couple of years.

 

Richard Lim, chief executive of Retail Economics, suggested that the new shops would be able to benefit from the scale and systems that The Range has in place.

 

"This is a fascinating development and unlikely to have been part of the original plan when it was acquired," he said.

 

But he suggested that the move would be "no easy feat", with many High Streets struggling with dwindling numbers of shoppers out and about.

 

"Many profitable store locations have already been snapped up by competitors and a successful roll-out of this scale at speed will be dependent on the selection of great locations that offer sustainable levels of footfall," he said.

 

In the new stores, customers will also be able to look through the full Wilko range and order products for home delivery on new terminals.

 

The Range also plans to sell Wilko products across its own 200 shops.

 

Lots of Wilko's stock in its shops consisted of its own-brand products when it was operating, with shoppers lamenting the loss of its pick and mix sweets and household goods on offer earlier in the year.

[Arthur]

Link: Wiggle Chain Reaction enters administration, as expert warns collapse is "just the start of big changes" across bike industry

 

Wiggle Chain Reaction has confirmed that it is entering administration, following weeks of speculation about the beleaguered retail giant’s future amid a funding crisis for its parent company and reports of cancelled orders and payments to suppliers.

 

In a statement released today, Wiggle Limited said that the affairs, business, and property of the company are now being managed by joint administrators Anthony John Wright and Alastair Rex Massey of FRP Advisory, a corporate advisory and restructuring firm.

 

However, the company has also said that “all orders made with Wiggle will continue to be delivered as usual, and our standard terms and conditions still apply for item returns and warranty claims”.

 

The appointment of administrators marks the rather inevitable culmination of a tumultuous month for Wiggle Chain Reaction Cycles.

 

At the start of September, Wiggle CRC announced a pre-tax loss of £97 million for 2022, a significant drop from the previous year blamed on the after-effects of the Covid pandemic, Brexit, and the ongoing economic uncertainty within the bike industry.

 

Then, earlier this month, the cycling and outdoor retailer’s parent company, Signa Sports United (SSU), confirmed that it was suffering “severe liquidity and profitability challenges” amid the delisting of its shares and what it described as the “unjustified” withdrawal of €150 million in previously guaranteed funding from its own owner.

 

That sudden shortfall in funding sparked rumours last week that Wiggle CRC itself was heading towards administration and that the company had stopped paying its suppliers, while Berlin-based SSU – which also owns Bikester and Probikeshop – prepared to make insolvency filings for its subsidiaries and closed its offices in the United States.

 

Continues...

[supportman]

Consortium to close

 

RM-plc-Strategy-timetable-and-closure-of-the-Consortium-business.pdf (rmplc.com)

[6Foot2]

Link: Thames Water told by auditors it could run out of money by April | Water industry | The Guardian

 

The parent company of Thames Water has been warned by its auditors that it could run out of money by April if shareholders do not inject more cash into the debt-laden firm.

 

In accounts signed off in July and published on the Companies House website last week, PricewaterhouseCoopers said there was “material uncertainty” about whether the main company behind the water supplier can continue as a going concern.

 

The disclosure was made in the 2022-23 accounts of Kemble Water Holdings, the company at the top of Thames Water’s byzantine ownership structure.

 

PwC made its assertion after noting that there were no firm arrangements in place to refinance a £190m loan at one of its subsidiary companies.

 

Thames Water is expected to face further scrutiny over its debt levels when it issues its results on Tuesday, and a possible investigation into whether it misled MPs earlier this year.

 

In June, it emerged that contingency plans for the collapse of Thames Water were being drawn up by the UK government amid fears that Britain’s biggest water company would not survive because of its huge debt pile.

 

Sir Robert Goodwill, chair of the environment, food and rural affairs select committee, said it was considering a fresh investigation after the Financial Times reported that Thames Water had originally presented a loan from its shareholders to its parent as new equity funding.

 

Alastair Cochran, chief financial officer at Thames Water, told MPs in July that its “incredibly supportive” shareholders “have already provided £500m of equity this year, in March, which was fully drawn by the company”.

 

However, according to the Kemble accounts, the investment had come in the form of a £515m convertible loan reportedly charging 8% interest per year.

 

The accounts highlights the complicated web of companies behind the water supplier. In early 2023, Kemble Water Holdings issued £515m of convertible loan notes to its shareholders, translating into £500m after fees, and this money was then “cascaded” through various parts of the group before eventually ending up with Thames Water Utilities Limited – the regulated company that supplies water and sewerage services to about 15m households in London and across the Thames valley area ...

[XiJ]

I’m 100% confident I know who is going to end up paying for that.

[LeMarchand]

Our local Wilko is now Poundland. In a triumph of planning the small Poundland, which had seen off a larger one in the site opposite Wilko (ex-Woolworths, now the Job Centre), closed Thursday night while the larger one didn't open until Saturday.

 

The staff all got moved over and they rehired some of the Wilko staff too.

Edited December 12, 2023 by LeMarchand

[mikeprice]

There seems to be a new Wilco opening in Warrington - in the posh shopping centre

so they are being revived - in some way anyway!

[HarryMonkey]

Didn't The Range buy some Wilco stores up with a view to reopening them as Wilco?