One of the losing bidders for House of Fraser has urged its new owner Mike Ashley to “do the right thing” and pay all its suppliers and concession holders in full because he clinched the deal so cheaply.
Philip Day, the retail billionaire behind Edinburgh Woollen Mill, spoke out 48 hours after the Sports Direct owner snapped up the stores and assets within hours of House of Fraser entering administration.
In his first public statement since losing the battle, Mr Day called on Mr Ashley to “honourably” ensure that suppliers and concessionaires — who are collectively owed at least £70 million — are not left out of pocket.
Yes, you’ve got that right. The losing bidder, the one who offered less money, is asking that the winning bidder, the one who offered more, should pay even more. Even more and more, than he himself, that losing bidder, was prepare to offer.
House of Fraser has admitted to having just 11 days to save 17,000 jobs as the retailer scrambles to secure a lifeline before its cash runs dry.
The stricken department store chain must pull in fresh funding by August 20 or risk collapse through a failure to pay its bills.
The deadline outlined by the retailer is when a number of suppliers must be paid, including a raft of in-store concessions.
It was revealed in a statement to the Luxembourg Stock Exchange, where its bonds are listed, underscoring how little time bosses have left to save the business.
It’s the credit insurers that matter. If they’ll not insure suppliers then they’ll need cash before delivery. Not that that’s a bad thing. It’s just that moving from – say and for example – 120 days payment terms to cash before delivery swallows vast amounts of working capital.
Which is, of course, the very thing HoF ain’t got.
This isn’t to insist upon a 100% track record but often enough it’s those credit insurers who pull the plug on retail.
As to whether HoF should go. Well, department stores? Mixed retail in expensive and premium High Street locations? Entirely possible that this business idea itself is just dead.
Four of Europe’s biggest airlines have joined forces in a fight against striking French air traffic controllers, demanding European authorities step in and help a sector that is “on the point of meltdown”.
British Airways owner International Airlines Group, Ryanair, easyJet and Wizz Air today submitted complaints to the European Commission.
French industrial action restricts the fundamental principle of freedom of movement within the EU, the airline quartet claim.
No lorry driver can ever strike as that damages the free movement of goods, no ISP can ever go bust as that disrupts the free movement of services…..
The Silicon Valley giant, which for years has served as a reliable cash cow for shareholders,
Normally – abut we’d not expect the Telegraph’s young shavers to know this, would we? – cash cow is reserved for shares that actually pay out cash. Facebook doesn’t pay dividends….
A parasite spread by cats could be the key to being a successful entrepreneur, scientists have concluded.
The discovery suggests there may be a bizarre advantage to being infected by the organism, Toxoplasma gondii.
According to the findings, the single-celled parasite worms its way into the brain and causes personality changes associated with risk-taking.
The white cat causes the excess of entrepreneurialism rather than being a symptom of it.
Carillion crisis ‘could happen again’
It’s bust and gone, isn’t it?
At the same time the public sector has become too reliant on a small handful of big businesses which are effectively “too big to fail” as they run vast swathes of public services with little effective competition.
Carillion, the UK’s second-largest builder and a major supplier of outsourced services, collapsed in January.
And, err, that we’ve just allowed one to fail shows that they’re not to o big to fail, no? For what it means is not one too big for it to be easy for us to let it fail, not one too big for us to be happy if it fails, but one so big that we cannot allow it to fail.
A cash rich investor with balls of steel could have a go:
A family who have seen the value of their London flat slashed from £600,000 to just £90,000 because of Grenfell-style cladding will sue a government agency that helped them buy their home.
They are the second homeowners in the New Capital Quay development in Greenwich to have their flat valued at rock-bottom prices.
It’s then uncertainty over who will replace, when, and at what cost, that cladding.
The company said some flats had been valued at £0. They were unsellable, unrentable and unmortgageable.
I doubt unrentable is true.
But even so, there’s an option value to those flats. Which, if you were cash rich, might be a good little bet.
Jeff Bezos, chief executive of Amazon, is by most accounts a mild mannered sort of guy with classic West Coast liberal views. There is one thing, however, that makes him as ballistic as one of his Blue Origin space rockets – and that’s any mention of subjecting Amazon to a break-up.
He may, on the other hand, have to get used to it. On both sides of the Atlantic, the invasive market power of his business creation is the object of ever closer political and regulatory scrutiny.
Amazon is successfully bankrupting old retail models. Therefore we must break it up.
Sodding idiocy. If we’ve a new and better way of doing something then we want to have more of it. We want it to bankrupt the old and less better way because that’s how that works, that’s how we get more better. And whether it is better is defined by how much of the old way it bankrupts.
Fruit picker shortage leaves British farmers accepting anyone with ‘two hands and two legs’
A one armed fruit picker might be a bit slow but legs?
An alternative is to raise wages of course…..
The problems came after KFC switched its deliveries from Bidvest Logistics to DHL in a deal struck last year.
DHL said “operational issues” meant several KFC deliveries over recent days had been incomplete or delayed.
It added: “We are working with KFC and our partners to rectify the situation as a priority and apologise for any inconvenience this may have caused.”
But business is just so easy, isn’t it? Open the doors and the profits just roll in. Or so half the Guardian would have you believe.
The other half are so deluded they think the State can do it……not realising it doesn’t take all that much to cock it up.
I’m just finishing off my first draft of a trade book (ie, here’s a small flat fee Tim, give us 50,000 words) on business models.
An idea arises.
So, lots of amputees out there.
Drop shipping is becoming more of a thing. Internet sales are becoming more of a thing.
So, combine the two.
You, the customer, go around these drop shipping sites (or you, the business, sign up to every drop shipping site in the country). Order is paid for, drop shipped to business site.
Seamstress adjusts the clothing according to the specific needs of the amputee. Properly done, well sewn. The amputee having sent in pictures of the state of the limb so that proper measurements are known. Instead of trouser legs being pinned up and the like.
Then adjusted clothing is sent on to customer. Margin charged for seamstress. This should be (note, should be) lower than the cost of taking to a seamstress out in meat world, search costs lower and so on. Margin is gained on the original drop ship plus on the adjustments.
Original marketing to start at least would be pretty simple. There are various organisations aiding amputees after all.
If this actually works you can send me some money.
Have they gone full South Seas?
There’re some 1,500 of them out there. There are exchanges which list some to many of them.
Cross exchange rates are going to have margins in them. Arbitrage.
No one wants to put actual money in of course.
Invent a new currency. Give some of it away. Get it listed on a few exchanges (for some this is a function of giving the exchange some invented money).
The retained portion is now capital to do arbitrage with.
So, why won’t it work?
Brexit, at its heart, is a recognition that Britain has become steadily weaker since it spent much of its empire wealth fighting two world wars – too feeble in the years before the 2016 referendum to sustain an exchange rate of $1.60 and €1.40, just as it was too poor to cope with $4 to the pound in the 1950s and $2 to the pound in 1992.
Manufacturers were unable to make things cheaply, reliably or efficiently enough against the headwind of a high-value currency, forcing many to give up. An economy that boasted 20% of its income coming from manufacturing in the 1980s found it was the source of barely 10% at the beginning of this decade.
Surges in GDP growth in the 70 years since the war can be attributed (and this short list makes the point crudely) to periods when there were cheap raw materials and energy costs; or a growing population; or foreign ownership and management of key industries; or the offloading of vast amounts of state and mutually owned assets; or cheap borrowing. Without these in operation to improve the UK’s performance, a lower exchange rate became inevitable.
So, the 70 years since 1945 were years of bad economic management then? Doesn’t that mean that those years of bad economic management should not be repeated? You know, that puts the kibosh on the entire Corbyn/McDonnell set of plans?
Pension funds should be encouraged to invest in purposeful companies; up to £100bn could be earmarked.
Whose money is that and earmarked by whom?
And when do we get to see the administrator’s report into the Work Foundation?
Average salaries for advertised jobs in the Royal Borough of Kensington and Chelsea are under £30,000, according to a study by jobs site Adzuna. Jobs near Sloane Square tube station pay an average of £25,686, South Kensington offers £26,447 and High Street Kensington is marginally better with average salaries of £29,367. But statistics show the affluent borough is home to Britain’s top earners. A new study has revealed how Britain’s richest borough has some of the lowest wages in London – but its wealthy residents are the country’s top earners. Figures released by the Office of National Statistics last year show residents of Kensington and Chelsea had the highest income in the country – an average salary of £158,000. In contrast, the Adzuna study found jobs in Tower Hamlets – one of the capital’s poorest boroughs, where residents earn an average of £41,800 – offered much higher salaries. Jobs near Shoreditch High Street paid an average salary of £37,074, those near Tower Hill pay £30,118 on average.
The retail outlets in a largely residential borough don’t pay very much.
The spillover from The City and the tech hub into Tower Hamlets pays a lot.
Who would have thought it?
At around the same time, the former Facebook executive Chamath Palihapitiya held a public interview at Stanford University in which he did not exactly mince his words. “The short-term, dopamine-driven feedback loops that we have created are destroying how society works,” he said. “No civil discourse, no cooperation, misinformation, mistruth … So we are in a really bad state of affairs right now, in my opinion.”
No civil discourse, no cooperation.
Two billion people actively use Facebook; at least 3.5 billion are now reckoned to be online. Their shared habits, compulsions and susceptibilities will clearly have a huge influence on the world’s progress, or lack of it.
So that’ll be civil discourse and cooperation between some 2 to 3.5 billion people then, eh?
But this is the truly scary bit and the one which is really the point of what is being said:
So we ought to listen to Tristan Harris and his campaign. “Religions and governments don’t have that much influence over people’s daily thoughts,” he recently told Wired magazine. “But we have three technology companies” – he meant Facebook, Google and Apple – “who have this system that frankly they don’t even have control over … Right now, 2 billion people’s minds are already jacked in to this automated system, and it’s steering people’s thoughts toward either personalised paid advertising or misinformation or conspiracy theories. And it’s all automated; the owners of the system can’t possibly monitor everything that’s going on, and they can’t control it.”
And then came the kicker. “This isn’t some kind of philosophical conversation. This is an urgent concern happening right now.” Amid an ocean of corporate sophistry and doublethink, those words have the distinct ring of truth.
No one controls what these 2 to 3.5 billion people do. They get to just discourse and cooperate among themselves as they see fit, with no guidance from government, politicians or a priestly caste.
It’s the classical liberal fantasy come true and the progressive liberal nightmare. For if the people can do it for themselves what need of the caste of progressive liberals to tell them what to do?
Notorious mobster’s daughter hawking Godfather coffee pods
The daughter of notorious Sicilian mob boss Totò Riina has begun selling coffee pods and olive oil in his memory, just weeks after his death.
An unrepentant antithesis to ethical coffee, the “Uncle Totò” capsules are named after the ferocious Corleone-based godfather responsible for dozens of murders who once ordered a 13-year-old boy to be strangled and dissolved in acid.
One of the less dangerous ways she could trade on the family name, no?
Word (or Office 365) subscription. Needs to be paid. I’ve a US credit card. Which I can add to their system, but only for purchases in the US. Sitting here in Portugal I must use a card with a P address.
You know, as if people never move around, never buy stuff outside home, never have, say, a business cc from a different country?
Well done to a multinational there, eh?