10 to 15 retailers to go bust

zarazara

by mid-January according to "experts" and todays [ Sundays] papers. If this happens not only will thousands be out of work but there will be lots of empty shops which is bad for city centres and so the downward spiral begins.
Your thoughts please.

michaels

Save some of your xmas cash for those closing down sales?

Lynsey76

Did they speculate on which retailers?

bo_drinker

The Mirror reckoned 320 plus but wouldn't name any. We have had a 200 million pound shopping ctr inc houses etc put on hold. There are already 40 plus empty shops in and around town with retail parks looking sparse. Went into Comet the bloke in their said they had been busy, only because Currys is !!!!!!.

fc123

Just a quicky onto this thread....I haven't got much posting time at the mo.

A lot of chains are doing 'Pre Packs', then go into administration, offload the leases on poor performing stores and...voila...appear again all cleansed and refreshed.
The gossip on Mosaic fashions is that tgey will go into adminiatration in Jan 09; all the fascias will be broken up into bitesize chunks, bad stores will be dumped, a few suppliers will be out of pocket etc.

There is a lot more of this going on than just shops closing down for good. But looks like this type of business behaviour is going to be changed by law soon.

This was from trade press today.

Insolvency rules set to change

• Published: 19 December 2008 11:06
• Author: [EMAIL="MarinoDonati@emap.com"]Marino Donati[/EMAIL]
• More by this Author
• Last Updated: 19 December 2008 11:06
• Reader Responses

High street retail administrations have increased

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New insolvency regulations to come into force next year are aiming to tackle controversial "pre-pack" sales of businesses in administration.

The new statement of insolvency practice 16 in England and Wales, to come into effect on January 1, will make it compulsory for administrators to disclose detailed information to creditors before and after a pre-packaged administration.
The regulations will impact practices where a company in administration is bought back new owners without loss making stores and other liabilities, in a "pre pack" deal, which can leave creditors out of pocket.
Instances of this type of deal have become more common as the economic downturn kicks in.
In pre-packaged sales from 1 January, the administrator will have to disclose to creditors information including the source of their initial introduction and any connection between the purchaser and the directors, shareholders or secured creditors of the company.
Paul Stanley, the managing partner for the North-west at Begbies Traynor, the restructuring specialist, told the Independent: "The accusation that has been levelled at the [insolvency] profession is that sometimes procedures have been abused by lazy insolvency practitioners and therefore the regulators of insolvency practices have brought out these new guidelines."

overlander

All part of the repair process we need to go through, we need to clear out the dead wood before we can move on.

bo_drinker

overlander wrote: »

All part of the repair process we need to go through, we need to clear out the dead wood before we can move on.

There will be a lot of that going on post Xmas/ Jan sales. They will be going down just as the rent is due.

overlander

I reckon they will use the January sales to clear out their stock and as you say clear out by end of January. But lets be honest the ones which are going down could only survive in Browns miracle economy of free money. They were never going to survive in the real world so i say good riddance as they mark the end to a mental era of gordonomics.

nokiauk

this also reported by bbc

http://news.bbc.co.uk/1/hi/business/7794426.stm

Would be interesting to know who these retailers were and exactly how "at risk" they are?

mewbie_2

overlander wrote: »

All part of the repair process we need to go through, we need to clear out the dead wood before we can move on.

Which at least means lots of work for arboriculturists. It's not all gloom!

Max_Headroom_3

zarazara wrote: »

by mid-January according to "experts" and todays [ Sundays] papers. If this happens not only will thousands be out of work but there will be lots of empty shops which is bad for city centres and so the downward spiral begins.
Your thoughts please.

I rather feel that it's probably more accurate to say "so the downward spiral continues".

In my town the high street features a closed down Dixons, a closed down Dorothy Perkins, a closed down Jessops, an about to be closed down Woolworths, a closing down Original Shoes, plus one or two other big independants, all big double fronted stores, all leaving big empty holes.

Then in addition off the top of my head I can think of a further probably 10 smaller (but still reasonably sized) independents that are shut, shops empty.

There is no real reason to come to the high street anymore, so much is gone and those that remain are things like Ladbrokes and Poundland and Burgerking. Oh and quite a few estate agents...

It's a vicious circle, the more that go, the less trade will be pulled in and the more others will go.

It really makes you wonder where it will stop. Will some towns simply end up with rows of boarded up shops and young kids being told "in the olden days people used to come here to buy things from different shops"?