CNC Paul":1x6hg9xh said:
I did notice that Allen Sugar bought a pile of shares in Woolies a couple of months ago, maybe a touch of circling vultures after their property portfolio 8)
From what I understand Alan Sugar tried to buy a stake in Woolworths but the deal didn't go through due to some problem with an Icelandiic bank. His motive was less one of coveting Woolies' property portfolio than one of self interest. He owns a lot of the stores and Woolworths are a major tenant. He saw his monthly rent cheques disappearing.
Well now they have. I can't see him re-letting those big high street stores in a hurry.
Woolworths own very little of their own property. They have been selling it and leasing it back for years simply to survive.
Roger S":1x6hg9xh said:
....The 99-year-old group, which still sells more sweets than any other British retailer and has top five positions in toys, children's clothing, homewares and entertainment products, was in discussions regarding the potential sale of its 800-store retail business to restructuring specialist Hilco UK for a nominal sum. (£1)
Woolies owed the banks money. Hilco offered quite a large amount (£250million) and the rest later. The banks said 'No...we want it all...now'.
Woolies is now in administration.
You're quite right about the banks in this situation. But by forcing the issue the banks will come out with next to nothing.
Woolwoths owe the banks upwards of £400m. They have 800 shops. That's half a million per shop!
I popped in to Woolies in Bramhall yesterday to see if they were giving anything away yet. Not quite, but I did get the radio controlled helicopter that Dan jr wants for Christmas for £15 instead of £35 :lol:
Thing is though, a quick look round told me that in a fire sale the entire stock in the shop wouldn't raise more than £50k against that half mill! Multiply that by 800 shops and the banks are taking a severe haircut! After the liquidator takes his cut there will be diddly squat left. There very seldom is. And as all the shops are now leasehold there are no other assets to flog. The days of premiums for leases are long gone.
Harry C":1x6hg9xh said:
We keep hearing the same rhetoric about how those Bankers have brought the economy to the brink of disaster.
I partially agree with this argument but at the end of the day who was encouraging the banks to lend more and more and who's responsibility is it that the banks are behaving properly- the FSA and who ultimately dictates to the FSA what good governance looks like............ yes the GOVT.
It was in the interest of the govt to see cheap credit being doled out so that even people on the dole could say look I can afford a 3 series BMW.
And even worse Gordon Brown has still not realised the folly of the last decades spending binge.
He is certainly going to leave a legacy..... one that the next generation can look forward to paying off. Sad Sad Sad
You're quite right, Harry.
I avoided that point as I didn't want to get political. But seeing as you raised it...
Labour got in to government in 1997 by turning themselves into another Tory party. While originally this tactic was no doubt intended as a Trojan Horse enabling Labour to revert to socialist type once established in power, something strange happened.
They actually started to believe their own propaganda.
The credit and housing bubble created by the total lack of effective regulation of the irresponsible and greedy banks was mistaken by the government as being sustainable growth. So they encouraged the banks to go further.
Now the bubble has burst.
I have no doubt however, that the Conservatives would have done exactly the same thing. Let's face it, most governments around the world seem to have been guilty of the same stupidity.
So, are we going to put the politicians up against that wall, too?
Come the revolution...
Dan
