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Fairyland

Austin Reed Files Notice For Administration With 1,000 Jobs At Risk

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Apologies if this is already posted.

Link: http://www.theguardian.com/business/2016/apr/22/austin-reed-files-notice-for-administration-with-1000-jobs-at-risk

Alteri recently bought Austin Reed’s debt and equity from Darius Capital, a group controlled by property tycoon Guy Naggar, who was previously involved in the now collapsed investment company Dawnay Day. The fund is expected to have to pump more money into the retailer, which has 155 shops and employs an estimated 1,000 people

Is it a new business these days? Form a company squeeze in as much as you can then push it into administration. Vulture economics????

Edited by Fairyland

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Retails will continue being reemed.

The towns I visit are pretty gappy.

For every new shop that eventually arrrives, 2 shut.

Then 80% of the new shops do not last 12 months.

They could, you now, lower rents.

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Retails will continue being reemed.

The towns I visit are pretty gappy.

For every new shop that eventually arrrives, 2 shut.

Then 80% of the new shops do not last 12 months.

They could, you now, lower rents.

Apart from the tat (99p) shops - they're booming! The UK is looking more and more like an Eastern Bloc country, replete with Eastern European accents.

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On a visit back to my Derbyshire hometown recently i was surprised that it seems to be very much bucking the trend described here, the once prevalent pound shops/charity shops/empty shops are all being replaced with chi chi boutiques, trendy bars and eateries, coffee shops and quite a few tech businesses.

I suspect it's all being funded by credit, from the retailers to the customers... as there are f*** all decent paying jobs in the area.

I preferred it as it was.

Edited by mike74

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Apart from the tat (99p) shops - they're booming! The UK is looking more and more like an Eastern Bloc country, replete with Eastern European accents.

99/pound shops are doing bad at the mo.

Even the idiots ha susses out they are a scam.

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On a visit back to my Derbyshire hometown recently i was surprised that it seems to be very much bucking the trend described here, the once prevalent pound shops/charity shops/empty shops are all being replaced with chi chi boutiques, trendy bars and eateries, coffee shops and quite a few tech businesses.

I suspect it's all being funded by credit, from the retailers to the customers... as there are f*** all decent paying jobs in the area.

I preferred it as it was.

Tax credits. Made up girly shops.

Discounted rents to try and lure someone to sign for a long term, bankrupting lease.

Same as pub leases were 10 years ago.

Picking up idiots so you can repo their asses and/or redundancy payouts.

Edited by spyguy

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Retails will continue being reemed.

The towns I visit are pretty gappy.

For every new shop that eventually arrrives, 2 shut.

Then 80% of the new shops do not last 12 months.

They could, you now, lower rents.

Hopefully someone on here can confirm if this is true or not, but I was told most commercial retail spaces are a line on a balance sheet for a fund based in the BVIs. If they reduce the rent they have to do a write down on the funds value, so they'd rather have an empty shop with a make believe high rent.

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Hopefully someone on here can confirm if this is true or not, but I was told most commercial retail spaces are a line on a balance sheet for a fund based in the BVIs. If they reduce the rent they have to do a write down on the funds value, so they'd rather have an empty shop with a make believe high rent.

Not quite.

MOst commercial units are owned by life insurnace companies.

Due to nuts accounting an empty shop at 10k/month is more valuable then a full one at 5k/month.

If they lower the rent then the discounted future value drops, making the lI insolvent.

Its can kicking. But this time the interweb has shortened the road. LI funds will go under soon.

Acutaries - idiots who only had to get 2 questions right - how long will I live + How much will my money return.

Noone employs actuaries much these day.

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Bracknell is weird; for 15 years they have been threatening to demolish the existing 1960's town centre and rebuild, but never have. Originally was supposed to cost 750M but now seems to have magically shrunk to 240M. Finally though in 2016 there are plenty of cranes and diggers and whoever's figures you believe it looks like a very expensive exercise. WHY though, at a time like this?! This is not going to end well.

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99/pound shops are doing bad at the mo.

Even the idiots ha susses out they are a scam.

You could possibly put that down to shrinkage, also dotting a few 50p things about the place and selling them for £1 hopping nobody notices? ;)

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If you need a job, get a bus into town and head for risk. There are 1000's of jobs at risk.

No, we shouldn't be laughing....labour is becoming too expensive......what can we give people to do that makes it worth them doing it?

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Bracknell is weird; for 15 years they have been threatening to demolish the existing 1960's town centre and rebuild, but never have. Originally was supposed to cost 750M but now seems to have magically shrunk to 240M. Finally though in 2016 there are plenty of cranes and diggers and whoever's figures you believe it looks like a very expensive exercise. WHY though, at a time like this?! This is not going to end well.

Wrong thread?

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Not quite.

MOst commercial units are owned by life insurnace companies.

Due to nuts accounting an empty shop at 10k/month is more valuable then a full one at 5k/month.

If they lower the rent then the discounted future value drops, making the lI insolvent.

Its can kicking. But this time the interweb has shortened the road. LI funds will go under soon.

Acutaries - idiots who only had to get 2 questions right - how long will I live + How much will my money return.

Noone employs actuaries much these day.

I can confirm that. A row of shops in Virginia Water emptied by LL massively increasing the rents. They don't care to have tenants because you have to administer them whereas an empty row of shops just gets more valuable the longer you wait. Its the same with office space in Peterborough town centre.

I had to chuckle this lunchtime. Two Maseratis on display in Queensgate shopping mall. Far beyond the reach of anyone who shops there. Where were they displayed? Right outside BHS - The only person who could afford one of those is Green after pillaging BHS but unlikely he would visit Peterborough in case his ex-employees chose to string him up.

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Really not surprised by this. They sell pretty good quality stuff at mid tier prices- too expensive for the M&S crowd and not upmarket enough for the designer/ bespoke tailoring brigade

They've had pretty much a constant sale for about 2 years now

RIP Austin Reed - another nail in the coffin of British retail

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Not quite.

MOst commercial units are owned by life insurnace companies.

Due to nuts accounting an empty shop at 10k/month is more valuable then a full one at 5k/month.

If they lower the rent then the discounted future value drops, making the lI insolvent.

Also if they have multiple shops, and drop the rent on one, they have to account for lower rents = values on the whole estate. Keeping one at a historical high rent and letting the rest to charity shops allows them to pretend the empty/charity ones are worth the higher rent...

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Really not surprised by this. They sell pretty good quality stuff at mid tier prices- too expensive for the M&S crowd and not upmarket enough for the designer/ bespoke tailoring brigade

They've had pretty much a constant sale for about 2 years now

RIP Austin Reed - another nail in the coffin of British retail

Sympathies to those of course affected, but tbh I thought AR had folded years ago?

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Also if they have multiple shops, and drop the rent on one, they have to account for lower rents = values on the whole estate. Keeping one at a historical high rent and letting the rest to charity shops allows them to pretend the empty/charity ones are worth the higher rent...

Prior to 2008 they were very concerned about the effect any new leases granted would have, in terms of evidence at review, for other nearby properties. There is a general acceptance that the days of seeing significant, or any, uplift at five yearly review are long gone.

If the landlord's finances can withstand it they will grant new long leases at lower rents to quality tenants with good covenant strength if they've had a few flakier tenants come and go.

Most of these retailers disappearing is less about rudderless mismanagement, although it may have been rife, and more like the removal of BT phones boxes. Yes, you could maybe have done something better or more interesting with them but in many cases they are simply obsolete.

Edited by SNACR

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Most of these retailers disappearing is less about rudderless mismanagement, although it may have been rife, and more like the removal of BT phones boxes. Yes, you could maybe have done something better or more interesting with them but in many cases they are simply obsolete.

Even more so for a company that sells suits in a low wage, low skill, tax credit economy. You only need to wander round a town/city for 5 mins to see that most people are scruffy ***** nowadays - and I count myself in that. Whether temporary or not it seems to be a cultural change in fashion as much as a death of high street issue.

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