Another High St Casualty!

[Van]

http://news.bbc.co.uk/1/hi/business/4345293.stm

They're dropping like flies! Courts, Allders, now the GS!

Gadget Shop into administration

High Street retailer The Gadget Shop, which employs 700 staff, is to go into administration this week.

It comes after a boardroom split on whether to sell the chain of 65 stores.

"It is extremely regrettable that The Gadget Shop has to be placed into administration by Tuesday," said a spokesman for the firm.

They said executive chairman Chris Gorman's number one concern is "for the staff and he will be working hard with the administrator to find a buyer".

Five shareholders

He said the aim was "The Gadget Shop continuing, and saving the jobs of staff".

The chain is not being placed in administration because it is in financial difficulties but because some directors want to sell the business while others are opposed to the move, and placing it in administration now may force a sale.

The shops, which are based in most major UK cities, sell everything from computer games to videophones and other electronic gadgetry and gifts.

The Gadget Shop has debts of only a few million pounds. It is understood accountants PKF will be appointed as administrators.

Potential buyers include rival chains or private equity groups, although analysts think these investors may be losing interest in the retail sector as consumer spending slows down.

According to The Sunday Times, Mr Gorman has the support of Scottish entrepreneur Tom Hunter who is worth an estimated £500m.

The duo have a combined shareholding of 50% of the Gadget Shop. Their vision for the company is thought to be opposed by Freeserve founder Peter Wilkinson and trader John Wood - who own 40% of the group.

The remaining 10% of shares is held by Jonathan Elvidge, the chief executive and founder of the Gadget Shop in 1991, who is understood to support Mr Gorman.

[Van]

Hmm.. although it does say that it's due to conflict about the direction of the GS rather than financial difficulties. Be interesting to see the outcome of this one. Personally I quite like the GS.. where else can you pick up a plasma ball on the high st?

[Guest consa]

20% off today on everything in Brighton, didn't buy anything though.

[Tonyb69]

Went in to Allders in Chelmsford today. It closes in 10 days.

Actually felt sorry for the staff, with signs up to stop verbal abuse. Thinking back to the 80's through to the early 90's it's beginning to feel very simular.

As finance manager I speak to our company bank manger a lot. He has been working late every night, with lots of business customers struggling. Importers have been hit the worst with a poor Christmas and retailers not taking stock.

I'm sure it's only going to get worse.

PS Don't forget C&A went only a couple of years ago.

[Once in a lifetime]

Signs are the begining of an end! (who next?)

[the_duke_of_hazzard]

Reminds me of the end of the dotcom boom... anybody going to Falco anyone then?

[Tonyb69]

Signs are the begining of an end! (who next?)

<{POST_SNAPBACK}>

My money is on MFI or a high street electrical retailer, although I think they are all owed by the same company (Dixons, PCWorld, Currys)

[George]

novelty worn off?

[Tonyb69]

FT:- Bankruptcy advisers are hiring extra staff amid fears that an end to the global credit boom could spark a surge in business failures in the US and Europe.

http://news.ft.com/cms/s/5b00c6ae-93fc-11d...000e2511c8.html

[Guest muttley]

My money is on MFI or a high street electrical retailer, although I think they are all owed by the same company (Dixons, PCWorld, Currys)

<{POST_SNAPBACK}>

Dixons have been threatening to withdraw from the high street for a while now,citing increaring business rates and commercial rents.Their out of town stores( including PC World and Curries) have fewer overheads and are much more profitable.

WH Smith is my personal bugbear.They don't seem to know what they want to sell.Is it books,stationery,music,DVDs?

[Guest Charlie The Tramp]

The chain is not being placed in administration because it is in financial difficulties but because some directors want to sell the business while others are opposed to the move, and placing it in administration now may force a sale.

The directors who want to sell can see the coming recession. Electronic gizmos get hit hard in recessions, and like the STRs, want to grab their money and let the new buyer take the losses.

Clever innit.

[VacantPossession]

Dixons have been threatening to withdraw from the high street for a while now,citing increaring business rates and commercial rents.Their out of town stores( including PC World and Curries) have fewer overheads and are much more profitable.

WH Smith is my personal bugbear.They don't seem to know what they want to sell.Is it books,stationery,music,DVDs?

<{POST_SNAPBACK}>

Agree. WH Smith used to be a book shop. You can now find only the most naff titles there now. Go to another independent, decent bookseller if you want anything just slightly off mainstream.

WH Smiths have declined terminally over the last 10 years. They are trying to be all things to all people. It doesn't work. They have a bland selection of books, a bland selection of DVD's, a very bland collection of what they half heartedly call "stationary" and their software is pathetic. I hope they go under and giveway to another (non monopoly) high street supplier.

VP

[JBFTB]

Kinda made me smile reading about this. I mean I feel sorry for people losing their jobs, but every single time I've been into one of these shops I've seen people poking around, having a nose, coo-ing over the gadgets...and never actually buying anything.

[Timmy Manson]

My hit lists for retail failures/ breakups over the next 2 yrs is:

M&S : Green will be back, and he'll get it for less than last years bid.

WH Smith : They were well ( too well?) defended, now they will keep sliding.

Boots : What to say about these people.

Buys would be companies that retail takeout pizzas, video rentals and sex toys. Well the best things in life are free, or at least cheap!

[Once in a lifetime]

My predictions

Boots, W.H. Smiths, Woolworths, Body shop, Dixions

All announce store closures/ staff redundancies (Big Numbers)

Most clothes shops Next, Dorothy Perkins....etc... even more serious numbers

some house-hold names gone completely. this year !

(place your bets!)

[Bluelady]

My predictions

Boots, W.H. Smiths, Woolworths, Body shop, Dixions

All announce store closures/ staff redundancies (Big Numbers)

Most clothes shops  Next, Dorothy Perkins....etc... even more serious numbers

some house-hold names gone completely. this year !

(place your bets!)

<{POST_SNAPBACK}>

All the above kept going through recession in the early 90s. People don't just stop spending money when times are hard; they're just more selective about what they buy and at what price.

[Once in a lifetime]

All the above kept going through recession in the early 90s.  People don't just stop spending money when times are hard; they're just more selective about what they buy and at what price.

<{POST_SNAPBACK}>

True, but some have already made closures and redundancies,

belts are being tightened further this year through low sales.

The only stores being built in recession times and appear to be

unaffected by recession are the big supermarkets Tesco... etc

[dogbox]

My hit lists for retail failures/ breakups over the next 2 yrs is:

M&S :          Green will be back, and he'll get it for less than last years bid.

Completely agree. Amazing how despite millions spent on consultants and relaunches, they dont get the basics right. All the bosses need to do to see where problems lie is visit thier own stores as a customer.

I went into M & S for the first time in 2 years.

Couldnt see how to get through the tills into food section from clothing. Lots of people apparently confused by this.

Grey bland 'Fosters 1982' Mens clothing was the 'instant' impression.

No prices on many goods, and confusing shelf labels.

Huge till queues.

Cakes in 3 different sections instead of 1.

No choice of less strong Beer, only 5+% headache brews.

Green will be back alright.

[CrashedOutAndBurned]

The Gadget Shop's main failing was that it didn't sell many Gadgets - just pure tat. Market-stall toys, pottery bears showing their todgers, screen-printed shot glasses, daft adult board games, crap lava lamps.

Actually, the Gadget Shop and Must Have It! are the ultimate credit bubble retailers - existing to do nothing but import cheap tat and create McJobs.

[Saving For a Space Ship]

400 jobs have just gone at Iceland Stores as well - sorry if this is mentioned elsewhere

[FreekBear]

Woolworths,

Woolies runs at a loss all year, except Xmas, where they make up for the loss.

Awful place woolies.

[sneaky_snookems]

Ohh come on guys listen to Tony and Gordon!!!

Everything will be fine come April. Property will double in value and the high street will make trillions overnight all becvause of a spring bounce.

Remember what our grandparents told us. Dont ever borrow money its a losers game. Except when its property you can't become anything but a million air overnight lets face it inflation will pay off your mortgage.

Or will it?

[the_duke_of_hazzard]

Can anyone tell us what these mass redundancies signify? Is this the herald of a recession, simple cost-cutting, or just a coincidence? When do the next unemployment figures come out, and is this a leading indicator of a rise in unemployment? What sort of levels of unemployment might make house prices tumble faster?

[200p]

Redundancies will always happen, its just either cost cutting or changes in on the highstreet and how we shop.

We ve lost a lot our major manufacturing sector jobs BUT more jobs have been created in the service (tertiary) sector.

Whether the recent spait of redundancies is significant - who knows.

What the general consensus is, is that consumer spending is slowing down, this will clear out the minows and allow the big players to shapen up and restructure. It looks like a soft landing at the moment for retail.

When job losses occur it makes headline news, and causes disgust. We dont really hear about jobs being created. Look at the new out-of-town shopping centres that have opened and extended trading hours of supermarkets; extending pub opening hours; internet shopping sites; all this has probably braced the employment figures somewhat.