CEX going insolvent rumour - how to verify?

CexMan

it's PWND not PNWD

superscaper

jimgee wrote: »

Oh yeah, and what the hell does "PNWD :rotfl:" mean?

It's something 13 year olds tend to use, precursor to text speak. I'm rather cynical of anyone online who uses that kind of thing and claims to be an adult. It's not simply the poor demonstration of grammar but the very context of use is very immature. "I'm better than you because I beat you because I said so, so there " essentially.

cavycrazy_2

CexMan wrote: »

Where has this bankrup thing come from lol our shop has taken 37k since sunday

From your company's status on Company House. Have you read the thread? Companies House are in the process of closing you down. Customs and Excise issued a winding up petition against you in order to get their money back.

Now who's been "pwnd"?

superscaper

cavycrazy wrote: »

From your company's status on Company House. Have you read the thread? Companies House are in the process of closing you down. Customs and Excise issued a winding up petition against you in order to get their money back.

Now who's been "pwnd"?

Also the "37K since sunday" thing, turnover doesn't really mean anything in terms of profit does it?

JasonLVC

No-one said Cex was bankrup (t!)

Bankruptcy (note the 'T') is a legally declared inability of an individual or business to pay their creditors.
Insolvency is a financial condition experienced by an individual or business when their assets no longer exceed their liabilities (basically, the business can no longer meet its debt obligations when they come due)

So CexMan may very well take £37k of sales in a few days but if that doesn't cover the costs of the business (rent, salaries, debtors, general overheads, etc) then £37k means jack all. If HMRC have issued a winding up order, then it means they've been paid late before and are now no longer prepared to wait for NI/Tax from Cex....perhaps CEX management should offer HMRC a credit note instead?.

Quite how Cex can manage to sell a second hand game for MORE than the cost of a new one would suggest 1) it doesn't understand the concept of second hand (ie, cheaper/used than new) or 2) it doesn't understand the concept of competition (ie, if customer can buy for less elsewhere they will, leaving Cex full of stock CEX has paid for but no-one wants) or 3) it knows the main client base will trade for credit and buy the overpriced stuff as the stuff they traded in wasn't theirs in the first place anyway so are still quids in.

cavycrazy_2

JasonLVC wrote: »

Quite how Cex can manage to sell a second hand game for MORE than the cost of a new one

Exactly. I bought "The Orphanage" on DVD, brand new, last week for £13.97 from Morrisons. CeX are selling it today, pre-owned, at £14. Not the best of business sense there.

CexMan

JasonLVC wrote: »

Quite how Cex can manage to sell a second hand game for MORE than the cost of a new one would suggest 1) it doesn't understand the concept of second hand (ie, cheaper/used than new) or 2) it doesn't understand the concept of competition (ie, if customer can buy for less elsewhere they will, leaving Cex full of stock CEX has paid for but no-one wants) or 3) it knows the main client base will trade for credit and buy the overpriced stuff as the stuff they traded in wasn't theirs in the first place anyway so are still quids in.

As you pointed out a large portion of the CEX customer base do exchange for store credit, however to claim that they are the people that you believe are selling stolen goods is a little foolish at best and downright stupid if all the misconceptions of generic customer type of CEX are to be believed. In other words if a smackhead as some of the earlier posts claimed was in there he would want money for his next hit rather than a different game/movie.
The price of new media is about equivelent as one bought at shops to allow poeple that buy these items and have either finished with them or didnt like them to trade them in with a minimal loss to themselves and in the same stroke to allow other people that get store credit to buy these items for much less than if they bought it with cash due to the differnce offered in the cash and trade prices. Now you always get people asking why can i buy this item for less brand new but these are generally the people wanting to spend cash so of course rather than !!!!!ing if you want a new release SHOP AROUND, Hell this forum is about saving money so there is rule one somebody will always have a better offer heck borders were selling blu-ray movies for a pound each last weekend wanna save some money find these deals and sell them to CEX, buy memory from a website rather than highstreet prices and sometimes you can sell them for a profit to such retailers, And as for the queues this is due to the fact that many people know of these things and take full advantage of what is offered and as for customers that are not selling things there are in most cases a seperate queue is available to expidiate sales.

cavycrazy_2

CexMan wrote: »

As you pointed out a large portion of the CEX customer base do exchange for store credit, however to claim that they are the people that you believe are selling stolen goods is a little foolish at best and downright stupid if all the misconceptions of generic customer type of CEX are to be believed. In other words if a smackhead as some of the earlier posts claimed was in there he would want money for his next hit rather than a different game/movie.
The price of new media is about equivelent as one bought at shops to allow poeple that buy these items and have either finished with them or didnt like them to trade them in with a minimal loss to themselves and in the same stroke to allow other people that get store credit to buy these items for much less than if they bought it with cash due to the differnce offered in the cash and trade prices. Now you always get people asking why can i buy this item for less brand new but these are generally the people wanting to spend cash so of course rather than !!!!!ing if you want a new release SHOP AROUND, Hell this forum is about saving money so there is rule one somebody will always have a better offer heck borders were selling blu-ray movies for a pound each last weekend wanna save some money find these deals and sell them to CEX, buy memory from a website rather than highstreet prices and sometimes you can sell them for a profit to such retailers, And as for the queues this is due to the fact that many people know of these things and take full advantage of what is offered and as for customers that are not selling things there are in most cases a seperate queue is available to expidiate sales.

This still doesn't explain why you are ripping people off left right and centre, though, does it? People waiting for orders, for vouchers, for wages, for cheques....why on earth would anyone want to trade with a company that doesn't pay up?

The_Madmouse

is it just me?......for someone that runs a supposed successful store turning over what was it...37k? they spend an awful ammount of time on here trying to defend themselves...cant be that busy

JasonLVC

CexMan, you seem to have a problem with paragraphs....which makes them tiresome to read. Some more spaces between thoughts please.

CEX's money troubles because they have too much stock/giving out credit/cash and not enough buyers/people with cash.....and you'd be surprised what a Cex credit notes goes for on the black market.

General analysis of the business (and not just mine, there has been much reviews on CEX in the financial media recently) seems to suggest that more people are taking the cash option, rather than the credit option.

This is because people would rather have £13 trade in as cash and go spend it at a store next door, rather than get £20 credit note but find they need to spend £22 to get the same game from CEX that is only £15 in a competitor store. So better to take £13 cash and add £2 rather than get a credit note for £20 which is next to worthless for what you want.

That coupled with a general need for cash in these credit crunch times means CEX are finding themselves with more stock and less customers. You may have taken £37k last week but was this net of outgoings for trade-ins? Becuase if you gave out £40k cash/credit and only took in £37k from buyers and credit notes then that is a £3k loss for you.

I appreciate you need to defend your employer and is perfectly acceptable, but CEX need to change their pricing and business model radically, quickly if they intend to survive in the marketplace. I've been a member of CEX for many years, but in recent years, the pricing has got stupid and the client base has changed very much for the worse.