Cable Forum - Changes on the High Street

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Re: House of Fraser in trouble...

Until Ashley's well known dodgy work and employment practices appear at HoF.

Re: House of Fraser in trouble...

Quote:

Originally Posted by Chris (Post 35958686)

It’s worse for the landlords if a chain goes bankrupt and they immediately lose 100% of the income, then have to apply to the liquidator to try to recover back rent. All the CVA process really does is force intransigent creditors to confront economic reality, which in turn may lessen the frequency and severity of these massive job loss news stories.

Yes, many commercial landlords simply will not face economic reality and renegotiate rents to save businesses. They would rather have nothing than something, in addition, they then have to pay the business rates, for security and insurance.

I once read that the reason is because, for accounting purposes, they can include empty properties in their figures for the rent that is being asked for. If they agreed to lower the rent, the figure would have to be the new lower rent. How true this is I don't know, but if this is correct, creative accounting cannot replace hard cash.

Also, some commercial landlords ask for a percentage of the profit that a business makes. It was this that stopped us from signing up to a property a few years ago as they refused to drop this clause in the lease. The property remained empty for another three years before being let, so they lost out in the end.

Re: House of Fraser in trouble...

Quote:

Originally Posted by Stephen (Post 35958812)

Think I'd rather see them go under than be bought by that idiot.

Indeed one wonders what plans he has for it Stephen.

Re: House of Fraser in trouble...

Quote:

Originally Posted by denphone (Post 35958829)

Indeed one wonders what plans he has for it Stephen.

Sell a few off to Aldi/Lidl

Convert a few to affordable housing (one bed flats)

Rent a few out to Amazon as local distribution centers

Convert a few to health clubs, night clubs, restaurants, etc

Give a few out as a bonus to his players :D

Re: House of Fraser in trouble...

Quote:

Originally Posted by Stephen (Post 35958814)

Until Ashley's well known dodgy work and employment practices appear at HoF.

At least people have some breathing space and ongoing wages now to start looking for other jobs if they feel that Sports Direct is not for them.

Re: House of Fraser in trouble...

Quote:

Originally Posted by 1andrew1 (Post 35958885)

At least people have some breathing space and ongoing wages now to start looking for other jobs if they feel that Sports Direct is not for them.

True, but it must be humiliating for staff. A bit like M&S being bought by Aldi!

Re: House of Fraser in trouble...

Quote:

Originally Posted by RichardCoulter (Post 35958959)

True, but it must be humiliating for staff. A bit like M&S being bought by Aldi!

Not as humiliating as being unemployed and there being no other jobs to go to :mad:

Re: House of Fraser in trouble...

Well the Dinosaurs became extinct and so the story continues with these mega shops. Sad it may be.

Re: House of Fraser in trouble...

The dinosaurs didn't see it coming either.

Re: House of Fraser in trouble...

Quote:

Originally Posted by gba93 (Post 35958978)

Not as humiliating as being unemployed and there being no other jobs to go to :mad:

I'm sure there will be some that would have rather taken the redundancy payment than end up working for the likes of Ashley, I know what you mean though.

---------- Post added at 22:11 ---------- Previous post was at 22:10 ----------

Quote:

Originally Posted by pip08456 (Post 35959013)

the dinosaurs didn't see it coming either.

🤣🤣🤣

Re: House of Fraser in trouble...

Quote:

Originally Posted by gba93 (Post 35958978)

Not as humiliating as being unemployed and there being no other jobs to go to :mad:

Indeed as being unemployed can happen to anybody wherever they are in the ladder.

Re: House of Fraser in trouble...

Quote:

Originally Posted by RichardCoulter (Post 35959026)

I'm sure there will be some that would have rather taken the redundancy payment than end up working for the likes of Ashley, I know what you mean though.

They would have been statutory redundancy payments so most people would be better off staying at HoF under Ashley and using it as breathing space to try and find something else if they didn't like him as an employer.

Re: House of Fraser in trouble...

The main problem with stores, is mainly the exorbitant rent the landlords charge.

As in housing in my town you pay £500pm for a room in a house.

Re: House of Fraser in trouble...

A lot of these city and town centre landlords are huge commercial property development and investment companies now as here are just two of them as they also have major shopping centres and out-of-town retail parks as well in their portfolios.

https://en.wikipedia.org/wiki/British_Land

https://en.wikipedia.org/wiki/Landsec

Re: House of Fraser in trouble...

Their sales have been going down. Rents and business rates aren't going to change that. The level of sales must have been at a level making rent and rates affordable at some point in time.