Companies That You Expect to Disappear Soon

C J Snarzell · 4 Mar 2020

Coronavirus may impact on a few travel companies if things do progress in the coming days/weeks. Many people (including myself) are already having thoughts about refraining from booking any future holidays until we know what's happening with the virus. Still a lot of uncertainty but clearly any long term effects (which hopefully may not happen yet) will certainly affect the travel industry.

CJ

RailUK Forums

nlogax · 4 Mar 2020

Hearing that Flybe will be out for the count by 11pm tonight once their last plane lands. Very sad if that's the case but it's been a long time coming.

ainsworth74 · 4 Mar 2020

For more on Flybe please see the dedicated thread here.

nlogax · 5 Mar 2020

I fear the Coronavirus will be it for many more UK companies. After all ongoing uncertainty around a potential no-deal Brexit the last thing British business needs right now is a complete downturn in domestic trade. The knock-on effects across the country could send us heading towards recession. Interesting - if depressing - read in the Graun this morning.

https://www.theguardian.com/busines...08c2df6d2739e6#block-5e60c4968f08c2df6d2739e6

"Michael Mulligan, insolvency partner at law firm Shakespeare Martineau, fears more companies will follow:

“Flybe’s collapse is the fourth significant UK airline failure since 2017. Whilst the impact of the coronavirus outbreak on demand for air travel was only partly to blame for its collapse, it is clear that the industry is going to take a savage hit in the coming weeks and months. The end of the line for another troubled European operator, Alitalia, is rumoured.

“It is still early days, but the unprecedented impact of Coronavirus is already causing massive challenges to people, business and supply chains. The virus could be the tipping point for those businesses already facing financial difficulties or with tight margins."

philjo · 3 Apr 2020

BBC radio reporting just now that Debenhams is expected to go into administration in the next few days.

https://www.bbc.co.uk/news/business-52156457

Debenhams, the department store chain, is facing administration for a second time.

The retailer is set to appoint administrators as early next week to protect the company against claims from creditors as it tries to restructure its business.

Debenhams has already closed 22 stores this year and plans to shut a further 28 in 2021.

However, the coronavirus outbreak has ramped up pressure on the firm.

scotrail158713 · 3 Apr 2020

philjo said:
BBC radio reporting just now that Debenhams is expected to go into administration in the next few days.

https://www.bbc.co.uk/news/business-52156457

I’m the current climate it’s probably not that surprising considering they were already struggling

Steddenm · 3 Apr 2020

Wonder how much longer Hays Travel will last?

Bald Rick · 3 Apr 2020

philjo said:
BBC radio reporting just now that Debenhams is expected to go into administration in the next few days.

https://www.bbc.co.uk/news/business-52156457

As predicted on page 1 of this thread, with much opposition, and I claim my prize.

Islineclear3_1 · 3 Apr 2020

Bald Rick said:
As predicted on page 1 of this thread, with much opposition, and I claim my prize.

Here you go then

Image shows Debenhams gift cards

Meerkat · 3 Apr 2020

Bald Rick said:
As predicted on page 1 of this thread, with much opposition, and I claim my prize.

You can’t claim your prize if it’s just another pre pack with a reduced Debenhams still non-disappeared!
There is a market for Department stores, and there are shopping centres and councils desperate to keep an anchor tenant.

Bald Rick · 3 Apr 2020

Islineclear3_1 said:
Here you go then

View attachment 76052

C J Snarzell · 3 Apr 2020

One surprising High Street casualty of 2020 is Bright House.
https://www.bbc.co.uk/news/business-52090976

BrightHouse - the biggest rent-to-own operator in the UK - has collapsed, with administrators now attempting to salvage parts of the business.

Customers should continue to make the monthly payments required to keep their household goods, with administrators now acting as the collecting agent.

The company had been struggling after an influx of compensation claims for selling to people who could not repay.

Without stereotyping, BH seemed to do much of their business with the less fortunate of our society who live on benefits & low incomes and take out HPs on their electrical luxuries.

I remember when BH was known as Crazy George's in the late 1990s and early 2000s and going into the local branch having a nosey at the APRs that were extortionate to say the least!!!

I'm wondering were many of the Jeremy Kyle's former contestants will get their cherished 70'' wide screens from now?

CJ

Iskra · 3 Apr 2020

New look refusing to pay suppliers too. Could be next to go.

https://www.bbc.co.uk/news/business-52153183

New Look says it is suspending payments to suppliers for existing stock "indefinitely", telling them in a letter that the stock can be collected by its owners.

The retailer is also cancelling orders for its Spring and Summer clothing lines and won't pay costs towards them.

New Look told the BBC it did not take the decision lightly. "This is a matter of survival," it told suppliers.

One small firm said New Look’s behaviour was “totally out of order”....

richw · 3 Apr 2020

C J Snarzell said:
One surprising High Street casualty of 2020 is Bright House.
https://www.bbc.co.uk/news/business-52090976

Without stereotyping, BH seemed to do much of their business with the less fortunate of our society who live on benefits & low incomes and take out HPs on their electrical luxuries.

I remember when BH was known as Crazy George's in the late 1990s and early 2000s and going into the local branch having a nosey at the APRs that were extortionate to say the least!!!

I'm wondering were many of the Jeremy Kyle's former contestants will get their cherished 70'' wide screens from now?

CJ

I’m not sure what’s surprising. Tightening of regulations has reduced the interest they can charge.

Compensation and writing off debt of people they sold to that was unaffordable just like Wonga killed them off.

Busaholic · 3 Apr 2020

philjo said:
BBC radio reporting just now that Debenhams is expected to go into administration in the next few days.

https://www.bbc.co.uk/news/business-52156457

They'd already announced this afternoon that their Truro store won't re-open after the crisis.

cactustwirly · 3 Apr 2020

Iskra said:
New look refusing to pay suppliers too. Could be next to go.

https://www.bbc.co.uk/news/business-52153183

A shame really, they do good jeans at a reasonable price.

Meole · 3 Apr 2020

Some retailers cannot continue their online presence because they owe their delivery contractors large amounts and future pick ups are being refused without settlement.

PG · 4 Apr 2020

Meole said:
Some retailers cannot continue their online presence because they owe their delivery contractors large amounts and future pick ups are being refused without settlement.

You reap what you sow!

On the flip side - are any courier/delivery firms likely to lose enough critical mass that then jeopardises their own existence?

House of cards, tumbling dominoes etc....

61653 HTAFC · 4 Apr 2020

I wonder how many of these businesses are going to use COVID-19 as a convenient fig leaf to hide their own incompetence?

C J Snarzell · 4 Apr 2020

Debenhams have been struggling to keep their head above water for a few years now. In Wigan near where I live, the town centre is literally now on it's ****, having lost Marks & Spencer last November so if they lose Debenhams too it will be the final nail in the coffin for the town's retail economy & many others across the country.

CJ

scotrail158713 · 4 Apr 2020

61653 HTAFC said:
I wonder how many of these businesses are going to use COVID-19 as a convenient fig leaf to hide their own incompetence?

I think there’ll be quite a few

Whistler40145 · 4 Apr 2020

Will chains like John Lewis Partnership remain or collapse?

Dai Corner · 4 Apr 2020

Whistler40145 said:
Will chains like John Lewis Partnership remain or collapse?

JLP's supermarket side should be doing well at the moment. Probably enough to cover the fixed costs of the department stores not recoverable from the Government?

Meerkat · 4 Apr 2020

IMO there is a market for Department stores, but maybe only one big chain plus John Lewis.
They will need co-operative landlords very keen for an anchor tenant and probably be smaller than they are now (Debs has been busily offloading whole floors to reduce floor space).
They will only be in the bigger towns, though I wonder if there is space for smaller stores relying on a lot of click and collect (Though Next might take that market)

Whistler40145 · 4 Apr 2020

Does John Lewis Partnership have a better footing as the workers more or less own the company?

Meerkat · 4 Apr 2020

Whistler40145 said:
Does John Lewis Partnership have a better footing as the workers more or less own the company?

On the other hand it means the shareholders can’t sustain big losses or add significant funds without market borrowing.

Dai Corner · 4 Apr 2020

Meerkat said:
On the other hand it means the shareholders can’t sustain big losses or add significant funds without market borrowing.

Though they can (and have) cut wages in difficult times as they're partly paid in bonuses.

Whistler40145 · 4 Apr 2020

With John Lewis Partnership, the more they sell, better the wages and bonuses are for the staff

AM9 · 4 Apr 2020

Meerkat said:
On the other hand it means the shareholders can’t sustain big losses or add significant funds without market borrowing.

Currently, JL has deployed many store staff into Waitrose where the current volume of business, the additional distancing measures and their own staff sickness has made good use of them. JL's business is probably minimising the impact of it's loss of store footfall by expediting click and collect* and deliveries efficiently.
* JL click and collect is another load on Waitrose resources.

Whistler40145 · 4 Apr 2020

AM9 said:
Currently, JL has deployed many store staff into Waitrose where the current volume of business, the additional distancing measures and their own staff sickness has made good use of them. JL's business is probably minimising the impact of it's loss of store footfall by expediting click and collect* and deliveries efficiently.
* JL click and collect is another load on Waitrose resources.

Does help that both companies are connected

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