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Empire Direct
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Bear in mind that PC World is just a trading style of DSG Retail Ltd, as is Currys and Dixons (online). PC World couldn't go into administration without Currys and Dixons going also.
They did post a trading loss, which isn't a good sign, but I think it would take longer term losses and trading difficulties to push them into administration.0 -
Nice how companies like this go into administration so easily, yet I was outside the Leeds branch on Sunday and there was a nice brand new Bentley parked outside with the private plate EMPIRE, or made up to look like that at least.
It's easy to blame the directors for over spending. Empire turned over £152million in their last year, and was a very profitable company, so I think buying a Bentley was the least of their problems.0 -
probably leased! but there's one reason companies go bust anyway, greedy directors taking all the profits out the company!
remember "the accident group"0 -
It's all very well having a turnover of £152 million, but obviously there costs must have been just as high, why else would they be losing money and have to go into administration?
The point I was making was, the guy with the Bentley was in no doubt the owner of the company, and how do you think putting the company into administration will affect him?
Probably not at all, any money he has put in will be as a secured creditor, he will be at the top of the list to get anything he is owed and he won't lose anything, not like the customers who have bought stuff from Empire, or the staff who have lost their jobs.0 -
It's all very well having a turnover of £152 million, but obviously there costs must have been just as high, why else would they be losing money and have to go into administration?
The point I was making was, the guy with the Bentley was in no doubt the owner of the company, and how do you think putting the company into administration will affect him?
Probably not at all, any money he has put in will be as a secured creditor, he will be at the top of the list to get anything he is owed and he won't lose anything, not like the customers who have bought stuff from Empire, or the staff who have lost their jobs.
He will have limited liability, not be a secured creditor.0 -
Whatever you say on here there is always another smart comment trying to put you down isn't there?
If a person puts any money into the company they should put it in as a secured creditor so that if a company does go bust, they are the first people in the queue to get there cash back. This is what I would imagine a Director of a company would do anyway.
The comment about Limited Liability, the company is a seperate legal entity to the Director, so the Director will have the same liability as any other shareholder in the company, ie the amount of any unpaid shares, which is most likely to be £0.
It is a couple of years since I have done my accountancy exams on that particular topic, but that is my understanding of it anyway.
I don't see what any of that has to do with my comment though. I don't mind being corrected but I was just making a tongue in cheek comment in the first place and then people with nothing better to do must just go through these forums waiting to pounce with there vast knowledge of everything.
All I was initially talking about is how the owner of the company was parked outside the Leeds branch of empire direct, in a brand new bentley on sunday, and then monday the company is in administration. I doubt the guy driving around in the bentley will be too bothered or lose much out of the company going into administration.0 -
My point was that he may too lose out here too.
His car could be leased, and with no salary, it won't take long for the car to go, especially one depreciating as fast as a Bentley at the moment.0 -
The main shareholder of Empire has a £50 million personal fortune apparently, so I guess he can afford to run a Bentley still.
I have got better stuff to do than pounce on people on forums. I have seen Empire Direct's accounts - it's very good to see the accounts of companies in different industries with different business models, to see what works and what doesn't. Looking at Empire's accounts, greedy directors doesn't seem to have been the problem. They had a lot of money tied up in stock. If you have the wrong stock (slow movers), or sales slow down and your stock turnover is lower than expected, or you have credit limits reduced from suppliers, this can massively impact on your cash flow. I understand this was a factor with Empire. I honestly don't think this company's failure was down to greedy management.
I resented the comment slightly, as similar things were said about me when my previous company ceased trading. The cost of a nice (lease) car was minimal compared to the overheads of the company, but people are quick to point at this as the reason and blame the directors for the failure when this is often not the case.0 -
Whatever you say on here there is always another smart comment trying to put you down isn't there?
If a person puts any money into the company they should put it in as a secured creditor so that if a company does go bust, they are the first people in the queue to get there cash back. This is what I would imagine a Director of a company would do anyway.
The comment about Limited Liability, the company is a seperate legal entity to the Director, so the Director will have the same liability as any other shareholder in the company, ie the amount of any unpaid shares, which is most likely to be £0.
While he won't have to pump any money in, its the equivalent of having millions of pounds in a bank account, and having it all taken away - so the shareholders will have lost a lot.
It is unlikely that the top bods will be secured creditors - the banks look at existing capital in the business when making loan decisions, and if they were then their credit line wouldn't be increased.0
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