Companies That You Expect to Disappear Soon

[Mcr Warrior]

Is the Wetherspoons chain going out of business? Have I missed something?

 

[dk1]

Is the Wetherspoons chain going out of business? Have I missed something?

Certainly not mate. Nothing like that thankfully. Just the odd readjustment here and there like any business.

 

[Peter Sarf]

I think they're more likely closing pubs that are no longer profitable in the current climate. Given how energy prices and wages have increased, and people are reported to be cutting back on spending, I guess pubs that were marginally profitable in the past have moved into the red.

Although I would expect 'Spoons to benefit from the cost of living problems to an extent. Sure, some of their customers will cut back on spending, but as a bit of a 'bargain basement' they are likely to attract customers from more expensive venues who can no longer afford higher prices but still want to go out.

What strikes me is that in South Croydon all the three nearest Wetherspoons to me have closed or are closing.

I do think they are a fairly good pub chain. Reasonable food offering of a predictable quality. Nice selection of Ales at a very reasonable price. A lot of the most dire non-Wetherspoons pubs died an age ago.

 

[Russel]

So odd the marmite effect that JDW gets. I’m definitely in the love camp as cannot fault them 95% of the time.

Same here, can't really fault them, you know what you're going to get and it's always good value.

Only time I've ever had an issues was in Torquay Spoons, during 2021 when half the country was isolating thanks to the NHS app, they seemed to suffer a terrible shortage, we waited over an hour for food, in the end we gave up and left but in all fairness to them, they didn't hesitate to give me a refund.

 

[Mojo]

I’ve seen in the media some suggestions that Paperchase, who have many shops at railway stations, amongst other places, may be about to enter administration.

 

[jon0844]

I’ve seen in the media some suggestions that Paperchase, who have many shops at railway stations, amongst other places, may be about to enter administration.

Their prices are/were insane (I don't know if they charge more at stations, like WH Smith?), and I'm sure that bar a few people in a massive last minute panic to get a card, everyone else goes to Card Factory.

 

[Typhoon]

I’ve seen in the media some suggestions that Paperchase, who have many shops at railway stations, amongst other places, may be about to enter administration.

Paperchase, the high street stationery retailer, is close to collapsing into administration as hopes of a solvent rescue deal fade.

Sky News understands the chain's parent company could appoint insolvency practitioners from Begbies Traynor as soon as Tuesday.

Paperchase's shareholders remain in discussions with more than one potential buyer, although insiders said that a sale of the business was now focused on a pre-pack deal, which involves a company's assets being sold immediately after it has fallen into administration.

It is unclear how many jobs or stores would be put at risk by an insolvency.

The latest development follows weeks of talks with prospective buyers, after PricewaterhouseCoopers was appointed to find new backers.

Sky News recently revealed that Paperchase had been put up for sale just four months after its most recent change of ownership.

The chain was taken over in August by Steve Curtis, an experienced retail investor who has been involved with Tie Rack and Jigsaw.

Retail Realisation, an industry advisory firm with which Mr Curtis and turnaround firm Rcapital are affiliated, was also involved in last summer's deal.

Paperchase had previously been one of many retail casualties of COVID-19, having undergone a pre-pack administration in January 2021.

There are only so many resuscitations!

https://www.msn.com/en-gb/money/oth...e-as-hopes-of-solvent-rescue-fade/ar-AA16TIv5

 

[SuspectUsual]

I’ve seen in the media some suggestions that Paperchase, who have many shops at railway stations, amongst other places, may be about to enter administration.

That’s spooky. I was in London at the weekend and walked past two or three branches of Paperchase and thought to myself “how are they still going?”

 

[jon0844]

That’s spooky. I was in London at the weekend and walked past two or three branches of Paperchase and thought to myself “how are they still going?”

I think the same when I see a high street WH Smith, but at least they have WH Smith Travel and the newspaper distribution side of the business, which is very profitable (although with the reduced sales of papers and magazines, even this must be taking a hit).

 

[Jimini]

I think the same when I see a high street WH Smith, but at least they have WH Smith Travel and the newspaper distribution side of the business, which is very profitable (although with the reduced sales of papers and magazines, even this must be taking a hit).

The newspaper / magazine distribution arm of WHSmith was split out about 20 years ago and now trades as Smiths News PLC, so a seperate entitity these days.

 

[Techniquest]

Their prices are/were insane (I don't know if they charge more at stations, like WH Smith?), and I'm sure that bar a few people in a massive last minute panic to get a card, everyone else goes to Card Factory.

Paperchase do indeed charge a fortune. I bought three cards and a pen in the Hereford store in December, as I wanted to get some high-quality festive cards and some birthday cards. I spent a little over £10! Yes I could have bought it all in a cheaper shop, but 1) there's something about Card Factory locally that I just don't like; 2) the cards in the other shops just weren't cutting it for me; 3) the quality of the cards I got in Paperchase were on a huge level, far surpassing what I could get elsewhere. In this case, it mattered that the cards were of a high quality level, so Paperchase was my first port of call!

It will therefore be a shame to lose them, understandable of course in the current financial climate.

 

[SuspectUsual]

But with any luck there’ll be a closing down sale - they do stock some lovely stationery stuff, but there’s no way I’m paying their normal prices.

 

[xotGD]

BBC: "
High Street stationery chain Paperchase has fallen into administration putting 820 jobs at risk.

It comes after the firm, which has 106 stores in the UK and Ireland, failed to strike a rescue deal.

Administrators Begbies Traynor said the shops would continue trading as normal for now and it would provide updates in due course."

 

[KashmireHawker]

BBC: "
High Street stationery chain Paperchase has fallen into administration putting 820 jobs at risk.

It comes after the firm, which has 106 stores in the UK and Ireland, failed to strike a rescue deal.

Administrators Begbies Traynor said the shops would continue trading as normal for now and it would provide updates in due course."

And as was suggested by Sky News this morning, Tesco has confirmed that they have brought the Brand and Intellectual Property.

Means the high street stores are finished.

Tweet is by Ashley Armstrong, Business Editor of The Sun.

“Tesco confirms it has bought Paperchase brand only. Means 800 jobs will lost and all 100 shops will shut. Greeting cards chain was bought just 4 months ago after private equity firm Permira dumped it, it went through pre-pack in 2021 and a restructuring in 2019. Long suffering.”

https://mobile.twitter.com/AArmstrong_says/status/1620392682869645312

 

[D6130]

Administrators Begbies Traynor said the shops would continue trading as normal for now and it would provide updates in due course."

....but the item also said that if you have gift cards, they will only be valid for another two weeks.

 

[xotGD]

....but the item also said that if you have gift cards, they will only be valid for another two weeks.

I think whatever the shop, if someone gives you a gift card, spend it asap.

 

[Thirteen]

Have to admit I use Card Factory and Moonpig for cards.

 

[Russel]

I doubt Paperchase has come as a shock to anyone.

 

[KashmireHawker]

I doubt Paperchase has come as a shock to anyone.

Considering it's there second Admin in 2 years, that answer is certainly not.

 

[Bald Rick]

Their prices are/were insane (I don't know if they charge more at stations, like WH Smith?), and I'm sure that bar a few people in a massive last minute panic to get a card, everyone else goes to Card Factory.

I was a regular customer at Paperchase (and I always, always had to queue at the tills, so they weren’t exactly struggling at the branches I used). Card Factory is just rubbish.

 

[jon0844]

So how did it all go wrong for them then?

Card Factory always has long queues too, and is one reason why I get put off going at certain times of the year.

 

[Bald Rick]

So how did it all go wrong for them then?

No idea. They always seemed to have loads of stock though, I wonder if cash flow was an issue.

 

[Mcr Warrior]

I wonder if cash flow was an issue.

It's what does for most failed companies.

Lack of cashflow exacerbated by lack of profitability.

 

[Trackman]

Card Factory always has long queues too, and is one reason why I get put off going at certain times of the year.

'Cheap as chips' from there though.
I do not buy cards unless instructed to do so and then under strong protest.

 

[SuspectUsual]

So how did it all go wrong for them then?

I suspect:

- very expensive retail locations
- a very wide range, meaning lots of money tied up in stock
- slower to react to “fashion” changes than eg Scribbler
- small average purchase balue
- massive cash flow problems

 

[Steddenm]

Didn't Paperchase have an exclusive deal with London Underground for a while selling LUL-branded items?

 

[Towers]

So how did it all go wrong for them then?

Card Factory always has long queues too, and is one reason why I get put off going at certain times of the year.

Quite simply, too expensive!

Also a rather limited selection seemingly aimed at trying to provide an 'artisan' style card product, but with really not very much to appeal to the average buyer. I've gone in on a number of occasions, quite willing to pay their prices, and found nothing that I like, which for a card shop isn't ideal!

 

[Bald Rick]

I've gone in on a number of occasions, quite willing to pay their prices, and found nothing that I like, which for a card shop isn't ideal!

I never had that problem at Papurchase; there was always something I liked. Conversely at Card Factory, despite very attractive prices, there was nothing I wanted to buy. It was all cheap and horrible.

 

[Mcr Warrior]

Conversely at Card Factory, despite very attractive prices, there was nothing I wanted to buy. It was all cheap and horrible.

Indeed. Ten cards for £1 offers, and, even then, still not value for money.

 

[BJames]

'Cheap as chips' from there though.
I do not buy cards unless instructed to do so and then under strong protest.

Yeah agreed now sadly - I only buy Christmas and birthday cards for my parents! I was one of the last people amongst my friends still to write cards but I have given up now. My Christmas cards last year came from Clintons which to be fair in Nottingham's Victoria Centre at least was incredibly busy all throughout December.

From my previous knowledge of Spoons on that list

Silkstone Inn Barnsley...too small for a Wetherspoons really, especially when they have a multi floor venue literally a few minutes walk away!
Percy Shaw Halifax...part of the 'leisure complex' which has always seemed like a bit of a white elephant when I've walked past it
Thomas Leaper Derby...never understood this in the first place, they could knock a hole in the wall and you would be in the Standing Order Wetherspoons right next to it!
Angel Islington...this one surprises me a little, considering it is pretty much directly opposite the exit from a Zone 1 tube station - there is however another Spoons in the area a bit of a walk away
The Billiard Hall West Bromwich...think I must have bankrupt poor Tim a few years ago in this one by putting a couple of pounds in the fruit machine and winning a couple of hundred out Seemed to be one of the 'highlights' of West Bromwich which probably explains a lot, I guess most people just head into central Birmingham these days for a few drinks

Although I've never understood who would even consider buying them, surely if Wetherspoons can't make them viable then it is going to be an uphill struggle for any other operator!

First time I went over to Derby this was something I remember being incredibly perplexed about - particularly because at the time one of them was being refurbished and there were huge signs up explaining how to get to the closest Spoons, which was of course right next door...