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Poundworld on brink of administration putting 5,300 jobs at risk
Poundworld is poised to announce its intention to appoint administrators.

The move will allow the company 10 days to two weeks to continue talks with potential buyers without the company's creditors being able to make a claim on the business.

It also allows its staff and suppliers to continue to be paid.

https://www.bbc.co.uk/news/business-44398352

That’s 5,300 jobs at risk

Quote:
House of Fraser to close 31 stores
Department store chain House of Fraser is to close 31 of its 59 shops, affecting 6,000 jobs, as part of a rescue deal.

If the plan is approved, 2,000 House of Fraser jobs will go, along with 4,000 brand and concession roles.

https://www.bbc.co.uk/news/business-44394948

While not retail, restaurant chain Carluccio’s is having to scale back too
Quote:
Carluccio's rescue plan could close 30 restaurants
Carluccio's could close up to a third of its branches in a Company Voluntary Arrangement (CVA) rescue plan.

Over 90% of Carluccio's creditors approved the CVA, allowing it to close 30 loss-making restaurants.

https://www.bbc.co.uk/news/business-44315826
Not sure how many jobs that will affect, but the one here in Chelmsford is potentially one to close.

Anyway, those three are a potential 11,000+ jobs under threat. As someone said on Twitter the other day, if this was the car industry, or steel, the government would be stepping in to try to keep those jobs safe. That’s partly because the job losses would affect an entire area, and could kill a town completely. Retail is more distributed around the country, so that problem is lessened, but even so, that’s still a big loss.

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Thu Jun 07, 2018 1:43 pm
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paulzolo wrote:
Quote:
Poundworld on brink of administration putting 5,300 jobs at risk
Poundworld is poised to announce its intention to appoint administrators.

The move will allow the company 10 days to two weeks to continue talks with potential buyers without the company's creditors being able to make a claim on the business.

It also allows its staff and suppliers to continue to be paid.

https://www.bbc.co.uk/news/business-44398352

That’s 5,300 jobs at risk

Quote:
House of Fraser to close 31 stores
Department store chain House of Fraser is to close 31 of its 59 shops, affecting 6,000 jobs, as part of a rescue deal.

If the plan is approved, 2,000 House of Fraser jobs will go, along with 4,000 brand and concession roles.

https://www.bbc.co.uk/news/business-44394948

While not retail, restaurant chain Carluccio’s is having to scale back too
Quote:
Carluccio's rescue plan could close 30 restaurants
Carluccio's could close up to a third of its branches in a Company Voluntary Arrangement (CVA) rescue plan.

Over 90% of Carluccio's creditors approved the CVA, allowing it to close 30 loss-making restaurants.

https://www.bbc.co.uk/news/business-44315826
Not sure how many jobs that will affect, but the one here in Chelmsford is potentially one to close.

Anyway, those three are a potential 11,000+ jobs under threat. As someone said on Twitter the other day, if this was the car industry, or steel, the government would be stepping in to try to keep those jobs safe. That’s partly because the job losses would affect an entire area, and could kill a town completely. Retail is more distributed around the country, so that problem is lessened, but even so, that’s still a big loss.


But we got blue passports :roll:

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Fri Jun 08, 2018 8:49 am
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All hail the great economic recovery!

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Sun Jun 10, 2018 10:10 am
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i wonder if online trading/sales is affecting the high street stores along with sky high local business taxes, i wonder.

ps. i may get around to renewing my very old and out of date blue passport when it returns to a full UK only passport in blue ...

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Sun Jun 10, 2018 2:29 pm
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MrStevenRogers wrote:
i wonder if online trading/sales is affecting the high street stores along with sky high local business taxes, i wonder.


Local rates & taxes (the ones issued by the local council) aren't that much of an issue by themselves. The issue is the cost of stock.
In the last 12 months, the devalued £ has meant a lot of items have increased in price, we've seen price increases of 50%+ on some items.

Businesses have tried to avoid passing all this cost on to consumers but that eats in to the money needed to run a business & depletes your reserves.
When businesses do start raising prices to cover their costs, people stop buying & the business goes under.

For businesses like Poundland where they don't get a 50%+ markup & would on a 1-4% margin & manufacture in China,then import to the UK, this happens a lot faster.

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jonlumb wrote:
I've only ever done it with a chicken so far, but if required I wouldn't have any problems doing it with other animals at all.


Mon Jun 11, 2018 8:39 am
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Quote:
Poundworld faces collapse after rescue talks fail

Discount retailer Poundworld is expected to appoint administrators, putting 5,100 jobs at risk.
Talks with a potential buyer R Capital have collapsed meaning that the owner TPG felt it had no option but to put the company into administration.

https://www.bbc.co.uk/news/business-44436435

My look into retail for an idea a few years back told me that unless you could really afford it, anywhere on a high street or busy area would attract massive rent (a unit in our local shopping centre were upwards of £200k per year), and the size of the smaller units were just above the threshold where you’d get a kickback from the council on rates. Anywhere cheaper was be off the beaten track, and wouldn’t atrract the needed footfall to keep something sustainable. I was asking myself - “how do shops keep going?” - especially the smaller ones. At the time, I was thinking that it would be the size of the business - the shops in the shopping centres were all the same as anywhere else - the suaul suspects - and most of them have the momentum and brand loyalty to keep going. I did find out why there were few, if any, independent shops in the town centre though. Just keeping the doors open was a massive cash operation. Buying in stock, paying staff, are extras on top.

If you have small, or tight margins, then you’re going to be hit hard by a weak pound, and this is cleraly where we are. Even the big anmes are not immune, even those with bigger margins than Poundworld.

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Mon Jun 11, 2018 9:34 am
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saspro wrote:
MrStevenRogers wrote:
i wonder if online trading/sales is affecting the high street stores along with sky high local business taxes, i wonder.


Local rates & taxes (the ones issued by the local council) aren't that much of an issue by themselves. The issue is the cost of stock.
In the last 12 months, the devalued £ has meant a lot of items have increased in price, we've seen price increases of 50%+ on some items.

Businesses have tried to avoid passing all this cost on to consumers but that eats in to the money needed to run a business & depletes your reserves.
When businesses do start raising prices to cover their costs, people stop buying & the business goes under.

For businesses like Poundland where they don't get a 50%+ markup & would on a 1-4% margin & manufacture in China,then import to the UK, this happens a lot faster.



Quote:
New research has found that six shops were demolished or converted every day for the duration of the previous business rates regime, as the property tax burden became unsustainable for thousands of independent retailers.

After analysing official government data, ratings advisor Atlus Group found that 15,856 shops completely “disappeared” across communities in England and Wales from 2010 until April 2017.

According to Atlus Group, at the start of the government’s last Rating List in April 2010, the shop count stood at 430,360, with a collective rateable value of £7.86bn. At the start of 2017, the headcount of shops had dropped 3.68 per cent, with a combined rateable value of £8.14bn.

Demonstrating the environment retail owners are competing in, the overall rateable value rose by £286m despite the steady decline in shops.


http://businessadvice.co.uk/high-street ... ven-years/

and its getting worse, along with online competition and other factors upto and including the exchange rate ...

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Wed Jun 13, 2018 2:22 am
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I'm amazed pound shops have lasted this long.
1) There's so many of them, the market is saturated.
2) A lot of what they sell (other than food etc) is just junk. You use it once and it breaks. People will soon learn a lot of their stuff just isn't worth buying.

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Mon Jun 25, 2018 11:23 am
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