Realistbear Posted August 2, 2006 Share Posted August 2, 2006 http://www.channel4.com/news/content/news-...jsp?id=31605090 Powerhouse goes bust Last Modified: 2 Aug 2006 Source: ITN Workers at Powerhouse electrical stores across the country have been sent home after being told the firm is going into administration. Usdaw, which represents workers at the company, said staff are "devastated" after hearing they will be made redundant. Powerhouse has more than 50 stores and employs around 800 workers, with a head office based in Bicester, Oxfordshire. I get the distinct feeling that we are seeing the Miracle Economy beginning to unwind at a faster pace. Job losses are THE achilles heel for HPI-MEW, IMO. Quote Link to comment Share on other sites More sharing options...
munimula Posted August 2, 2006 Share Posted August 2, 2006 http://www.channel4.com/news/content/news-...jsp?id=31605090 Powerhouse goes bust Last Modified: 2 Aug 2006 Source: ITN Workers at Powerhouse electrical stores across the country have been sent home after being told the firm is going into administration. Usdaw, which represents workers at the company, said staff are "devastated" after hearing they will be made redundant. Powerhouse has more than 50 stores and employs around 800 workers, with a head office based in Bicester, Oxfordshire. I get the distinct feeling that we are seeing the Miracle Economy beginning to unwind at a faster pace. Job losses are THE achilles heel for HPI-MEW, IMO. Question is will GB replace these 800 jobs with another 800 public sector pen-pushers? When this stops then we will get our HPC Quote Link to comment Share on other sites More sharing options...
Realistbear Posted August 2, 2006 Author Share Posted August 2, 2006 Question is will GB replace these 800 jobs with another 800 public sector pen-pushers? When this stops then we will get our HPC True. Government spending is now almsot 100% of GDP (target is 40%) which means Gordon may not be able to expand government jobs much further. I think he may be at the end of the road. The Miracle Economy meets head on with reality. Quote Link to comment Share on other sites More sharing options...
deano Posted August 2, 2006 Share Posted August 2, 2006 True. Government spending is now almsot 100% of GDP (target is 40%) which means Gordon may not be able to expand government jobs much further. I think he may be at the end of the road. The Miracle Economy meets head on with reality. 18 months ago the IMF warned GB about house prices, consumer debt and the budget deficit. Given a year to sort it out we heard nothing because by then GB was then president of the IMF. Perhaps he does not like disciplining himself. LOL. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted August 2, 2006 Share Posted August 2, 2006 (edited) Powerhouse goes bust 2 Aug 2006 Source: ITN Which increases the oligopoly in electrical retailing which... will increase prices which... will increase inflation which... will increase interest rates - can you see where I am going with this? Edited August 2, 2006 by Financial Planner Quote Link to comment Share on other sites More sharing options...
munimula Posted August 2, 2006 Share Posted August 2, 2006 Which increases the oligopoly in electrical retailing which... will increase prices which... will increase inflation which... will increase interest rates - can you see where I am going with this? Eventually but I guess in the short term this has been caused by supermarkets selling more electrical goods - at cheaper prices. However, have you noticed how supermarkets started selling petrol and undercut other petrol stations. These 'other' petrol stations have now disappeared and the supermarket prices are no longer cheaper and at my nearest petrol station which is at a Morrisons store there is an average queue of approx 10 cars everytime I go. Nice one supermarkets! Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted August 2, 2006 Share Posted August 2, 2006 Eventually but I guess in the short term this has been caused by supermarkets selling more electrical goods - at cheaper prices. ... i think he was having a bit of fun there ... ... still, Powerhouse eh ... saw that on the newswires with the usual whinging from the unions ... all I I could think about was those trawler guys out in all winds and weathers just to break even (no wages), and not a union rep on the quayside telling the the supermarkets it's unfair to offer such derisory sums for fish extracted at such a great cost .... ... what I'm saying I suppose is that powerhouse sales staff : take no risks, have no useful knowledge, add no value, get a wage off the back of far eastern slave labour, wouldn't sell a thing if the gov/boe/carry trade didn't give their sales victims the money to spend in-store ... ... need I go on? Pretty lucky to get paid anything for that kind of work imho (waits for P'house employee vitriol!) Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted August 2, 2006 Share Posted August 2, 2006 High rents and rates will kill off a lot more companies, looks like the landlords might be left with a pig in a poke this time. Landlords review High Court action with Powerhouse http://www.property-week.co.uk/story.asp?s...3071615&c=1 Landlords rethink High Court action with PowerHouse after the retailer suddenly went into administration 02.08.2006 By Mark Shepherd Landlords embroiled in a High Court action with PowerHouse were this week reviewing their options after the electrical goods retailer suddenly went into administration. Quote Link to comment Share on other sites More sharing options...
MarkG Posted August 2, 2006 Share Posted August 2, 2006 High rents and rates will kill off a lot more companies, looks like the landlords might be left with a pig in a poke this time. Well, most retailers are screwed, because their competitors can sell from the web for less while operating in cheap areas. Unless it's something you really must see before you buy, or where you really want local after-sales support if things go wrong, how can they compete? Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted August 2, 2006 Share Posted August 2, 2006 More job losses. Not sure how many are going from the UK yet, but it's supposed to be quite large..... http://www.theregister.co.uk/2006/08/02/eds_offshore/ I'm also seeing subtle job losses at the big supermarkets, i.e. Asda petrol stations are unattended (chip and pin machines in the pump) and the Asda deli counter has now closed at my local store, to be replaced by shelving with pre-cut "deli counter" meat. Probably no more than about 15 jobs lost (per store, if it's the same at each store), but I wonder what else they have planned? Quote Link to comment Share on other sites More sharing options...
shermanator Posted August 2, 2006 Share Posted August 2, 2006 More job losses. Not sure how many are going from the UK yet, but it's supposed to be quite large..... http://www.theregister.co.uk/2006/08/02/eds_offshore/ I'm also seeing subtle job losses at the big supermarkets, i.e. Asda petrol stations are unattended (chip and pin machines in the pump) and the Asda deli counter has now closed at my local store, to be replaced by shelving with pre-cut "deli counter" meat. Probably no more than about 15 jobs lost (per store, if it's the same at each store), but I wonder what else they have planned? Well, greed abounds among these landlords. I was in Maidstone in January looking at a shop and said to the spotty agent with plastic shoes, "I presume your client is open to offers". Chav agent, "there's been a lot of interest already and the landlord is prepared to wait for the right tenant". Now there are about 20 shops to let and these landlords reckon they can get full asking price AND pick and choose their tenants - unbelievable. Surely they just want to get their monthly cheque or am I wrong? Whatever, the high street has been pretty much dead for 2 years and is in recession. Quote Link to comment Share on other sites More sharing options...
CrashedOutAndBurned Posted August 2, 2006 Share Posted August 2, 2006 I've never actually heard of Powerhouse in my entire life. When they rose interest rates just a little in '04 there was a fairly noticeable high street fallout. There were a fair of empty units in the local town centre and shopping malls and it was lookign very 'early 90s'. Of course, Gordy loosening the debt-money reigns again and they filled up, no doubt with lots of incentives by landlords. With more debt, more unemployments, and an altogther trickier climate I imagine the fallout from the next round of hikes to be rather worse than before. Quote Link to comment Share on other sites More sharing options...
Perfectionist Posted August 2, 2006 Share Posted August 2, 2006 It's all Empire Direct's fault ..... Quote Link to comment Share on other sites More sharing options...
redwing Posted August 3, 2006 Share Posted August 3, 2006 Question is will GB replace these 800 jobs with another 800 public sector pen-pushers? Er... No. Not if you look at the mess they're in at DEFRA. News link to budget chaos. We really should stop paying unprofitable farmers to stay afloat and let them survive in the market like so many other businesses???!!! After all, they managed to it in New Zealand. Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted August 4, 2006 Share Posted August 4, 2006 (edited) It's all Empire Direct's fault ..... Undoubtedly they played their part, but even specialist food retailers are being hit: Greggs have axed 14 shops with the loss of 200 jobs are "losing patience with poor sales at its BaKers Ovens shops in N.England / Scotland. Profits fell from 15,6m to 12.5m in h1 after fuel bills rose 69% Oil prices rise? Nah, not a problem. Now, as I was saying, what the world needs is lower interest rates, to support thriving BTL businesses etc, ie the real economy. What people forget is that housing is an essential. People need to buy houses, but shares (businesses) are completely optional in an economy, like jobs. Did I ever tell you how I used to stew up and old wellington boot cos money were so tight when I were scrimping 'n saving to borrow the money to buy my property portfolio ... ( ) Edited August 4, 2006 by Sledgehead Quote Link to comment Share on other sites More sharing options...
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