imutual.co.uk

Former Staples chain Office Outlet in administration

https://www.bbc.co.uk/news/business-47626280

Another one that I shan't miss.

Good News on the retail front! ...for once profits are booming in retail, Wren Kitchens owned by The West Retail Group who also own eBuyer seem to have a full bank account!: http://www.kbbreview.com/22042/news/pro ... -kitchens/

Without wishing to appear nit-picking, the linked article refers to growth in profits but says nothing about their bank balances.

Growing businesses can be profitable but go under because of lack of cash (probably not the case here). The trouble can be that the cash is tied up in stock, in receivables or has been over-invested in equipment, leaving nothing to pay the wages or suppliers.

Most larger businesses have a moderate level of debt by choice rather than it being a sign of distress or difficulty (if you really want I can explain the rationale).

pabenny wrote: ↑

Fri Mar 22 2019 6:42am

Without wishing to appear nit-picking, the linked article refers to growth in profits but says nothing about their bank balances.

Growing businesses can be profitable but go under because of lack of cash (probably not the case here). The trouble can be that the cash is tied up in stock, in receivables or has been over-invested in equipment, leaving nothing to pay the wages or suppliers.

Most larger businesses have a moderate level of debt by choice rather than it being a sign of distress or difficulty (if you really want I can explain the rationale).

Not necessarily the case here, Wren has a lead in period whilst items constructed and materials are relatively inexpensive with very reasonable mark up...

Wren filed their 2018 accounts 4 days ago. They had £52m in the bank.

Wren filed their 2018 accounts 4 day ago. They had net current liabilities of £61millon.

Picking single figures from a set of accounts is stupid.

Clothing retail has mixed results: https://news.sky.com/story/gallaghers-p ... m-11672738

Constantine wrote: ↑

Fri Mar 22 2019 10:01pm

Wren filed their 2018 accounts 4 days ago. They had £52m in the bank.

hugginhill wrote: Wren filed their 2018 accounts 4 day ago. They had net current liabilities of £61millon.

Although it's true that Wren do have ample cash in the bank, part of my point was that this is not stated in the article. People often conflate cash and profits and likewise debt and losses.

And as Boro Boy points out, Wren's business model does (or at least should) doesn't need high levels of borrowing.

hugginhill wrote: Picking single figures from a set of accounts is stupid.

Agree. Although if I was to pick just one figure, it would be cashflow. Specifically cashflow from operations.

Debenhams seems to be teetering. For me the only surprise is how long it's survived.

Who next? The 'value' retailers have been expanding rapidly and there may be too many of them - B&M have picked up lots of sites from Homebase and other distressed stores, which may help with rents. TJ Morris (Home Bargains) have always been very canny and look solid. Poundstretcher looks vulnerable to me - from those I've seen, the stores are really dire and staff are demoralised. Poundland is not as bad but may choose to focus on other markets like Spain and Ireland.

Betting shops will close following restrictions on gaming machines.

And then any that turn out to have picked the wrong with Brexit strategy and don't have the resilience to withstand the consequences. (not a pro- or anti- discussion just referring to an effect of major uncertainty)