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Habitat Down The Pan (Except 3 London Stores)

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Is this bit correct?

Home Retail Group, owners of Argos and Homebase, is reportedly in talks to buy the Habitat brand for £20-30bn from private equity group Hilco.

£20-30 Billion?!? £20-30 million might be more realistic.

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Can't say I'm that surprised. Very expensive.

Home Retail Group, owners of Argos and Homebase, is reportedly in talks to buy the Habitat brand for £20-30bn from private equity group Hilco.

Even buying the company is very expensive according to the report. I think the mean million don't they?

http://business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article6954507.ece

Hilco and the Habitat management are understood to believe the chain can be restored to profitability if they can make £20m of cost cuts and improve profit margins.

And not made a profit since 2004/5.

Still I'm sure the financiers have profited from all this.

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Another success for private equity. What a successful business model (for the Directors/Partners).

Shame they leave debt riddled, ruined businesses all over the place, which are shallow husks of their former selves and can't weather the slightest downturn, let alone a major recession.

Edited by John Steed

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Another success for private equity. What a successful business model (for the Directors/Partners).

...why is it private equity is all too often liked with company failure.....no success without failure for some. :rolleyes:

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It was a business model that tried to be dedicated to high value london customers lol. The hatfield one was in a grotty retail park in between a comet and a homebase, the most surprising thing of it all is people actually got paid to run this business into the ground.

Edited by scrappycocco

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Is this bit correct?

£20-30 Billion?!? £20-30 million might be more realistic.

Inflation, the billion is the new million.

20,000,000 or 20,000,000,000 - it's just a big number

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...why is it private equity is all too often liked with company failure.....no success without failure for some. :rolleyes:

its linked to something mentioned on the AA thread, it is behaviour caused by Govt, much the same as BTL and everything else and why debt is always preferable and everyone has wanted it, it carries a tax advantage that it can be offset, its that advantage that all PE leverages against and why PE exists (and this peak private debt scenario), mix in limited liability and its a molotov cocktail. In short it is another Govt created complete behavioural failure

Edited by georgia o'keeffe

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its linked to something mentioned on the AA thread, it is behaviour caused by Govt, much the same as BTL and everything else and why debt is always preferable and everyone has wanted it, it carries a tax advantage that it can be offset, its that advantage that all PE leverages against and why PE exists (and this peak private debt scenario), mix in limited liability and its a molotov cocktail. In short it is another Govt created complete behavioural failure

Indeed. Moreover it seems to be a major factor in why many corporates simply dont pay tax (or barely any) any more opening up deficits which of course must then be closed by their idiot placemen like Osborne cutting spending (rather than taxing limited liability shell company corporates).

What a wheeze.

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Indeed. Moreover it seems to be a major factor in why many corporates simply dont pay tax (or barely any) any more opening up deficits which of course must then be closed by their idiot placemen like Osborne cutting spending (rather than taxing limited liability shell company corporates).

What a wheeze.

Yeah, agreed. Only an idiot would cut spending.

Me? I like to spend as much as much as I possibly can. :rolleyes:

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...why is it private equity is all too often liked with company failure.....no success without failure for some. :rolleyes:

My view is that all these private equity deals are essentially a fraud.

The people that run these firms need to be investigated.

Any deal that involves buying a company, then transferring excessive funds out of it (particularly if said funds are funded by debt) and then letting it go bankrupt to kill the debt is fraud in my book.

In reality this is also the business model of the whole financial banking sector Ponzi. Some win, some lose and the losers get bailed out to support the winners so called winnings.

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My view is that all these private equity deals are essentially a fraud.

The people that run these firms need to be investigated.

Any deal that involves buying a company, then transferring excessive funds out of it (particularly if said funds are funded by debt) and then letting it go bankrupt to kill the debt is fraud in my book.

In reality this is also the business model of the whole financial banking sector Ponzi. Some win, some lose and the losers get bailed out to support the winners so called winnings.

"privatising profits and socializing losses"......happening all too frequently, wherever you look lately. ;)

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This is a recognised development and has merely gotten worse as more pursue it....

a paper from 1994 that coined the term 'economic looting'....

http://papers.ssrn.c...tract_id=227162

(the last crisis in the late 1980's was merely the forerunner and the learning ground for the latest episode)

http://www.scribd.com/doc/13579076/Looting-Akerlof-Romer

Full paper is here.

HPC Thread on said paper

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"Home Retail Group, owner of Argos and Homebase, will buy the Habitat brand and three central London stores for £24.5m in cash."

I wonder if that means they will sell Habitat furniture at homebase?, that would actually make some sense being able to pick things up by car

It cant see it being sensible to retain the 50 designers if they were only going to run 3 shops in London

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The writing has been on the wall since Obama gave the order to throw alll summer bed linen into the sea!!!

AH THANK YUUUUUU

Edited by sbn

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Indeed. Moreover it seems to be a major factor in why many corporates simply dont pay tax (or barely any) any more opening up deficits which of course must then be closed by their idiot placemen like Osborne cutting spending (rather than taxing limited liability shell company corporates).

What a wheeze.

I would assume that had they had to pay tax they would have gone bust earlier.

A bit of redistribution is hardly going to solve any fundamantal problems.

Assuming that any tax raising is going to kill the economy further which third world countries do you think will be able and willing to finance our deficit and entitlements culture?

Cutting spending seems like a sensible way to address a debt problem. But then I am no Keynesian!!

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Have always referred to them as "Shabby-tat".

Some ok stuff but always think that it's just Ikea stock with an extra 0 on the price tag.

2nd hand furniture/recycling place in Brighton..

Picture 1.png

post-1212-0-25799200-1308920786_thumb.png

Edited by Badger

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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