40 Stores to Close... (part 2)

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Dream on
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Re: 40 Stores to Close... (part 2)

Post by Dream on » Thu Oct 25, 2018 9:44 am

Boro Boy wrote:More expected than news I think but Debenhams is to close 50 stores resulting in a couple of thousand job losses...!

See: https://www.bbc.co.uk/news/business-45972428
Debenhams has posted record annual losses and said it will close up to 50 stores, putting 4,000 jobs at risk.

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Re: 40 Stores to Close... (part 2)

Post by Constantine » Thu Oct 25, 2018 10:53 am

More detail here
https://www.bbc.co.uk/news/business-45975321

Debenhams made a pre-tax profit of £33m, but also made "exceptional write-downs of £512.4m, including reductions in the value of its goodwill, stores and IT systems", and therefore lost £491.5m overall.

They were going to close 10 presumably unprofitable stores, but have now decided another 40 stores will become unprofitable in the next few years, so they intend closing them as well.

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Re: 40 Stores to Close... (part 2)

Post by macliam » Thu Oct 25, 2018 11:38 am

Constantine wrote:More detail here
https://www.bbc.co.uk/news/business-45975321

Debenhams made a pre-tax profit of £33m, but also made "exceptional write-downs of £512.4m, including reductions in the value of its goodwill, stores and IT systems", and therefore lost £491.5m overall.

They were going to close 10 presumably unprofitable stores, but have now decided another 40 stores will become unprofitable in the next few years, so they intend closing them as well.
The numbers seem to be a pointless projection. They had decided to close 10 stores and now say that another 40 that are currently profitable may cease to be so over the next few years... It's hardly a strange concept that a company will close unprofitable stores and, by the sound of it, this is what Debenhams are saying. So, ignoring the copywriter's headline, Debenhams still intends to close 10 unprofitable stores and have identified a further 40 which will be closed, IF they become unprofitable. Sounds like a strategy to me, not a plan to close 50 stores.
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Re: 40 Stores to Close... (part 2)

Post by pabenny » Thu Oct 25, 2018 12:59 pm

macliam wrote:Debenhams still intends to close 10 unprofitable stores and have identified a further 40 which will be closed, IF they become unprofitable...
The big driver will be the lease commitments. Many retailers are being squeezed by declining high street sales and increasing high street rents. All those share-price boosting sale and leaseback deals in the 90s and 00s are now biting back.

Having been slow at 'rightsizing' their estate, they presumably want to signal to the markets that they are now addressing this challenge and a signal to landlords of expectations on rent reviews. Most Debenhams stores would be difficult for landlords to relet if Debenhams don't renew their leases, or worse go into liquidation.

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Re: 40 Stores to Close... (part 2)

Post by Boro Boy » Thu Oct 25, 2018 8:55 pm

I know there is a lot of competition in the food sector but it seems even after recent restructuring, problems & troubles continue; how can the job market continue to absorb these potential job losses...?: https://www.msn.com/en-gb/money/compani ... spartanntp :think:

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Re: 40 Stores to Close... (part 2)

Post by Constantine » Fri Oct 26, 2018 3:51 pm

macliam wrote:
Constantine wrote:More detail here
https://www.bbc.co.uk/news/business-45975321

Debenhams made a pre-tax profit of £33m, but also made "exceptional write-downs of £512.4m, including reductions in the value of its goodwill, stores and IT systems", and therefore lost £491.5m overall.

They were going to close 10 presumably unprofitable stores, but have now decided another 40 stores will become unprofitable in the next few years, so they intend closing them as well.
The numbers seem to be a pointless projection. They had decided to close 10 stores and now say that another 40 that are currently profitable may cease to be so over the next few years... It's hardly a strange concept that a company will close unprofitable stores and, by the sound of it, this is what Debenhams are saying. So, ignoring the copywriter's headline, Debenhams still intends to close 10 unprofitable stores and have identified a further 40 which will be closed, IF they become unprofitable. Sounds like a strategy to me, not a plan to close 50 stores.
Ignoring the headline is a lesson that everyone needs to learn. :)

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Re: 40 Stores to Close... (part 2)

Post by Constantine » Fri Oct 26, 2018 3:58 pm

Boro Boy wrote:I know there is a lot of competition in the food sector but it seems even after recent restructuring, problems & troubles continue; how can the job market continue to absorb these potential job losses...?: https://www.msn.com/en-gb/money/compani ... spartanntp :think:
Because there are other companies that are recruiting.

What did you think the answer would be?

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Re: 40 Stores to Close... (part 2)

Post by Boro Boy » Fri Oct 26, 2018 4:07 pm

Constantine wrote:
Boro Boy wrote:I know there is a lot of competition in the food sector but it seems even after recent restructuring, problems & troubles continue; how can the job market continue to absorb these potential job losses...?: https://www.msn.com/en-gb/money/compani ... spartanntp :think:
Because there are other companies that are recruiting.

What did you think the answer would be?
Perhaps I may have thought that the recruitment rate would not match the job loss rate and couldn't continue to absorb these job losses...? Had you contemplated that? :eh:

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Re: 40 Stores to Close... (part 2)

Post by William Joseph1 » Sat Nov 03, 2018 1:04 pm

Mike Ashley has just this week bough Evans Cycles for 8m https://www.bbc.co.uk/news/business-46074109
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Re: 40 Stores to Close... (part 2)

Post by pabenny » Sat Nov 03, 2018 1:36 pm

House of Fraser, Evans, interest in taking full control of Debenhams. A whiff of over-reaching?
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