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Retailers prepared for failure

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    Retailers prepared for failure

    http://www.telegraph.co.uk/finance/n...retailers.html

    Pre-packs ready for failing retailers

    Accountancy firms are believed to have at least 15 large so-called pre-pack administrations lined up for January as the economy continues to falter.


    By Helia Ebrahimi and James Hall
    Last Updated: 7:24AM GMT 22 Dec 2008

    The new year is set to kick-off with a raft of high profile companies changing hands. Top accountancy firms are already believed to be working on over a dozen controversial pre-pack deals, a number of which are in the retail sector.

    Pre-packaged administrations enable a company to prepare for administration and to swiftly be bought by new owners. These new owners can be the directors of the former company, with reduced liabilities which often leaves creditors out of pocket.

    Deloitte and PricewaterhouseCoopers are thought the be among a handful of accountancy firms working on a number of administrations already, some of which are thought to be pre-packs. Over the weekend Begbies Traynor, the insolvency expert, predicted that up to 15 chains will collapse by mid-January. Retailers have had a terrible December. Sales have fallen sharply and the chains are due to pay their quarterly rent bills at the end of this week. Many are expected to fail.

    Pre-packs have been criticised for giving the impression of a company failing one day and then operating the next. New rules come into effect on January 1 to make the process more transparent. In future the administrator of a pre-pack will have to reveal to creditors information such as how they were appointed and any connection between the purchaser and the directors, shareholders or secured creditors of the company.
    ǝןqqıʍ

    #2
    So they'll fail before the new year to avoid the new transparency rules?

    Or after the new year as the 'transparency' rules are actually a good way of hiding stuff a la freedom of information act?

    Comment


      #3
      Top Tip:

      Spend your (insert any high street name here) vouchers as soon as you get them, you may find they’re worth even less than the currency they were bought with when the shop ceases to exist.
      Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave Johnson

      Comment


        #4
        Originally posted by gingerjedi View Post
        Top Tip:

        Spend your (insert any high street name here) vouchers as soon as you get them, you may find they’re worth even less than the currency they were bought with when the shop ceases to exist.
        A good point. My kids have received W H Smith, Waterstones and HMV vouchers from various relatives. Better get them down the shops pretty quick I guess.

        Comment


          #5
          Originally posted by gingerjedi View Post
          Top Tip:

          Spend your (insert any high street name here) vouchers as soon as you get them, you may find they’re worth even less than the currency they were bought with when the shop ceases to exist.
          Wow, I never thought of that
          Better get down the shops.
          'Orwell's 1984 was supposed to be a warning, not an instruction manual'. -
          Nick Pickles, director of Big Brother Watch.

          Comment


            #6
            There are too many retailers - this makes it hard for everyone to make decent money.

            Comment


              #7
              Originally posted by AtW View Post
              There are too many retailers - this makes it hard for everyone to make decent money.
              AtW, you love monolithic organisation, don't you.

              Comment


                #8
                Originally posted by dang65 View Post
                A good point. My kids have received W H Smith, Waterstones and HMV vouchers from various relatives. Better get them down the shops pretty quick I guess.
                Another reason to give cash I guess.

                Comment


                  #9
                  Originally posted by BrilloPad View Post
                  Another reason to give cash I guess.
                  Or real presents, like books.
                  And what exactly is wrong with an "ad hominem" argument? Dodgy Agent, 16-5-2014

                  Comment


                    #10
                    Originally posted by Doggy Styles View Post
                    AtW, you love monolithic organisation, don't you.
                    I like competition, but part of that is some players going bust to make space for others to earn decent money to pay for R&D etc. If they can't make money they will keep prices higher up (how do you think they get 50-70% "sales"?), rip off store cards, exploitation of labour in 3rd world etc.

                    Comment

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