40 Stores to close... (part 5)

[AAAlphaThunder]

I see Intu Administration has gone Intu administration

I heard that just over 50% of their rental income went on paying the interest on their debt. They grew too big far too fast and now the employees are paying the price

The core issue is the rise in online shopping, already a significant trend, and with Covid-19 it finished Intu off.

[pabenny]

Weell

Unlike businesses that cease trading - like Thomas Cook, the shopping centres won't disappear. Which means that most employees will retain their jobs - TUPE* means that all employees transfer to the new owner(s) on substantially the same terms.

It's entirely credible that over half the rental income went on funding the debt that was used to buy the malls. It's exactly the same business model as buy-to-let landlords where the rental income covers the interest.

As Mr Thunder says, the continuing growth of online shopping compounded by lockdown has meant more empty units, more unpaid rent, more tenants demanding rent reductions. Intu have more destination malls - such as the Trafford Centre which will have shielded them to some extent. But they perhaps weren't diversified - they were entirely exposed to retail property.

---
* completely off topic - this important piece of legislation to protect employees originated with the EU in the 1980s.

[Richard Frost]

Coronavirus: Upper Crust owner SSP to cut up to 5,000 UK jobs

https://www.bbc.co.uk/news/business-53230682

Aerospace giant Airbus says it plans to cut 15,000 jobs as it deals with the effects of the coronavirus crisis.

https://www.bbc.co.uk/news/business-53242272

Department store owner John Lewis is planning to cut jobs and stores in an effort to slash costs.

The firm said it had come to terms with the fact it has too much store space.

It comes as luxury department store Harrods and Topshop owner Arcadia said they planned to cut as many as 1,180 jobs between them.

https://www.bbc.co.uk/news/business-53247787

About 600 workers will lose their jobs after shirtmaker TM Lewin announced it will close all 66 of its UK shops.

The firm said most of its 700 workers will be laid off as it takes all of its sales online, to help cut costs

https://www.bbc.co.uk/news/business-53242719

[AAAlphaThunder]

Covid-19 is really starting to bite.

[Richard Frost]

Aerospace giant Airbus says it plans to cut 15,000 jobs as it deals with the effects of the coronavirus crisis.

It will cut 1,700 jobs in the UK, along with thousands more in Germany, Spain and elsewhere.

https://www.bbc.co.uk/news/business-53242272

[planteria]

some good news.. i think..

https://www.bbc.co.uk/news/business-53261037

Primark presses ahead with new store openings

[pakefield]

Please come to Lowestoft. It will stop people having to go to Norwich to shop there and give people a reason to shop locally.

Not enough to get us heading north instead of south or west but would be very popular with a lot of locals

[AAAlphaThunder]

some good news.. i think..

https://www.bbc.co.uk/news/business-53261037

Primark presses ahead with new store openings

There's always one who is not like any other.

[Richard Frost]

The owner of High Street restaurant chains Café Rouge and Bella Italia has gone into administration.

Ninety one Casual Dining Group outlets will close immediately, and 1,900 of the firm's 6,000 staff will lose their jobs.

https://www.bbc.co.uk/news/business-53270679

The BBC is to cut 450 jobs in its English regional TV news and current affairs, local radio and online news.

The proposed cuts are on top of the 450 redundancies previously announced - and subsequently put on hold - by BBC News.

https://www.bbc.co.uk/news/entertainment-arts-53263793

[Chadwick]

The owner of High Street restaurant chains Café Rouge and Bella Italia has gone into administration.
Ninety one Casual Dining Group outlets will close immediately, and 1,900 of the firm's 6,000 staff will lose their jobs. Casual Dining Group, which also owns the Las Iguanas chain, said it hoped a new owner could save the firm.
Administrators Alix Partners are seeking offers for all or parts of the remaining business.

https://www.bbc.co.uk/news/business-53270679