Major Retailers Closing

BlameTheGame

Barratts and PriceLess have gone into administration

http://news.bbc.co.uk/1/hi/business/7851331.stm

poppy10_2

Asda to create 7,000 jobs
BSkyB to create 1,000 jobs

poppy10_2

Breaking news: DSGi emergency meetings, store restructuring

marvin

Baugur (Icelandic investment company) has gone into admin

What Baugur owns:

Companies related to Baugur employ some 50,000 people worldwide in over 3,500 stores, and have a total turnover of £5.4bn.
Fashion:
French Connection
Mosaic Fashions
Coast
Karen Millen
Oasis
Odille
Principles
Shoe Studio Group
Warehouse
Whistles
Jane Norman
All Saints
Day Birger et Mikkelsen
Matthew Williamson
Steinunn
SD&R
Arcticgroup
Department stores:
Debenhams
House of Fraser
Illum
Magasin Du Nord
Souk
Saks

Food:
Iceland
Speciality:
Hamleys
Aurum
Goldsmiths
Mappin & Webb
Watches of Switzerland
Wyevale Garden Centres
eCommera

Now to be clear it does not own all of all of these names and very few if any will actually go bump but Baugur's shares in all these may pass to Landisbanki.

opaque

That list doesn't seem totally accurate from what the BBC says:
http://news.bbc.co.uk/1/hi/business/7869342.stm

Debenhams not being on it for example as it is a public limited company. I think that list includes shops/companies they own chunks of shares in as well.

'Own's is a odd term to use really.
Here something from the FT with some figures on share %'s.
http://www.ft.com/cms/s/0/6698b058-f2a3-11dd-abe6-0000779fd2ac.html

marvin

The list comes from the Guardian (http://www.guardian.co.uk/business/2009/feb/04/baugur-iceland-bankruptcy) online, investment companies are simply that they hold investments in things often this means shares rather than whole business's.

If large numbers of shares come on the market at once this depresses the price if they are not taken up immediately and that in turn can put extra pressure on those business's.

opaque

Or the shares could go up as they are now in the hands of someone more stable (theoretically anyway given that it'll be the Icelandic national bank!).

It'll be goodbye smaller clothes shops then I guess!

marvin

opaque wrote: »

Or the shares could go up as they are now in the hands of someone more stable (theoretically anyway given that it'll be the Icelandic national bank!).

It'll be goodbye smaller clothes shops then I guess!

That presumes Landisbanki hang onto them and does not dump them, however most of the shares have dipped on the news.

sarahs999

http://www.telegraph.co.uk/finance/financetopics/recession/4609033/Stylo-creditors-reject-rescue-putting-5400-jobs-at-risk.html

Bad news for all those workers.

fc123

sarahs999 wrote: »

http://www.telegraph.co.uk/finance/financetopics/recession/4609033/Stylo-creditors-reject-rescue-putting-5400-jobs-at-risk.html

Bad news for all those workers.

Also the suppliers.

I also found the remark about trading nowadays with multiples interesting. Dune near us has closed.

Browning Group ceases trading

10 February, 2009 | By Laura Weir
Footwear supplier Browning Group has ceased trading after 23 years blaming tough trading conditions, the weakness of the sterling and a lack of available credit insurance for making it an unviable business. The uncertainty surrounding the future of Stylo, its largest customer, is also thought to have been a factor.


Browning said it would fulfil all outstanding orders but added that recent changes to the footwear and retail markets had made it difficult for it to turn a profit. It had sales of around £56 million in 2007 but made a pre-tax loss of £583,000.
Some 34 staff are in consultation.
Browning Group’s largest customer was Stylo, which owns the Barratts and Priceless chains. Stylo is in the process of trying to get support from suppliers and landlords for a CVA proposal to prevent the group from going into adminstration. Barratts and Priceless are already in administration pending the outcome of a creditor vote on the CVA proposals on Thursday. Under the proposals footwear suppliers would be paid outstanding monies over a 14 month period. Suppliers are thought to be owed somewhere in the region of £10m.
The Stylo situation is understood to have been one factor in Browning Group’s decision to shut down, although sources said it was not a major factor.

Browning Group owner and managing director Daniel Rubin said: “It is very sad that we have decided to cease trading. Supplying multiple retailers in today’s climate is extremely challenging and in our assessment the returns do not justify the risks.”

Meanwhile Maxgreat International, a far Eastern supplier to Browning Group, is to open an office in the UK. It has hired Browning Group sales directors Susannah Huller and Bridgit Turnbull to represent it. It hopes to pick up some of Browning Group’s orders direct from retailers.
Rubin said: “This direct sourcing is more suited to current market conditions and will enable retailers to receive excellent customer service at competitive prices.”
Rubin also owns fashion footwear chain Dune. Dune is unaffected by the closure of Browning.