Woolies

[Jake]

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.

In an earlier post, I defended the fatcat bankers. I hereby irrevocably withdraw all those comments. Can I please be the first to line the bankers up against the wall and pull the trigger?

I don't get your point, really. You think the banks are worse off and cut their own throats? Do you know that is the case? Banks aren't nice, nor are they infallible, but the natural implication I would take from that is that the banks think that their security is worth more than Hilco was offering them in exchange.

 

[StevieB]

I guess it depends whether the banks had their loans insured against default by Woolworths. If I had 350 million insured and you offered me 250 million as a payback on that 350 loan I would do the same as the banks - say no and collect the insurance. Don't forget that the banks do not lend out of the goodness of their hearts, be them made of stone or otherwise!

Steve.

 

[Jake]

Could be. It could be just that the banks see the same value in the properties that Hilco see, and don't see why they should hand a big chunk of it to Hilco.

 

[Jenx]

Could you just clarify what you mean by "gave the world everything".

Figuratively speaking of course... essentially a tiny country, that made enormous contributions in a variety of sphere's to shape the 'modern world' as we know it.

If examples are needed , things such as :

Steam Locomotive - Stevenson
Steam Engine - James Watt
Coke Smelting - Abraham Darby
Pneumatic Tyre - Dunlop
....
Anasthetics
Banking
Golf ( + Rugby, Football etc etc etc )
Breech Loading Rifle
Iron Bridges
Whisky
Postage Stamps
Various 'agricultural' firsts - Seed Drill, Reaping Machine, Grain Flail etc
Bakelite
Davy Safety Lamp
Hypodermic Syringes
Logarithms
Macadamised Roadways
Penicillin
Hollow Pipe Drainage
Radar
Refrigeration

..... the list is endless.

Ok, so not 'everything', but for the size of the country that we are, a disproportionate amount of contribution to the well-being of the world.

 

[lurker]

Jet engine - Whittle ( I'm sitting in his "old office" as I type!)

 

[filsgreen]

The roads, baths, vineculture, peace.

 

[joiner_sim]

Woolworths is coming back! Apparently even with Pick N Mix!

http://www.woolworthsblog.co.uk/

 

[big soft moose]

MFI are in the same position... going into receivership I believe.

maybe if "manufacturing faults included" folds people might realise that its better to buy decent furniture thats made to last rather than cheap crap that falls apart - if it ever goes together in the first place.

they might even get their tiny minds round the idea of paying what its worth rather than expecting to get furniture for under 20 quid.

and as regards the "its all the bankers fault" "no its all the govts fault" the people who are really at fault are the consumer - not everyone hear admittedly but it was joe public who wanted to borrow 6 x what they earn, and get second and third mortgages to spend up their equity on foreign holidays and fancy motors. It was joe public that wanted the banks to pay good interest rates (thus encouraging them to take silly risks), it was joe public who thought they could live on credit , and it was joe public who then defaulted on their loans when it became apparent that you couldnt live on credit for ever - and that is what started this mess.

Its all very well to say that the banks souldnt have leant to them , but no one made them borrow - my fiancee and i are on a relatively modest income but we have no debts other than a couple of low interest car loans - I use a credit card for day to day purchases but pay it off in full every month - and any other purchase we want to make we save up for it rather than getting it on supid percent apr buy it now deals.

 

[Jenx]

MFI are in the same position... going into receivership I believe.

maybe if "manufacturing faults included" folds people might realise that its better to buy decent furniture thats made to last rather than cheap crap that falls apart - if it ever goes together in the first place.

.

Very True, BSM ...
If i remember back to it, I think the point I was driving at was 'another high-street name' ( ok, 'out of town estate' name.. ) going under.
Zaavi followed, Others too, that I cant quite recall at this unearthy hour... and there will be more to come yet.
I don't know how people are finding things in the rest of the country, but up in the 'Oil Capital of Europe' , things are as tight as I can remember for many years. ( I sell mechanical instrumentation stuff to the Oil & Gas industry ). Business is "difficult", to say the least.
We're still very much at the thin end of what could be a long and worrying wedge.
Despite that being common knowledge.. my company put my target for 2009 UP by £100K, against the 2008 figures, in a decision that was only decided upon in Jan this year. :roll:
Quite where I'm supposed to find that from, is anyones guess....

Things are dire. Its going to be a tough couple of years.

 

[devonwoody]

Jenx, look on the bright side re the sales increase.
Your competitors might have gone or going bust and you have the market to yourself. So go out this morning and tell your customers they had better place some orders with you because there will not be any supply from the others.
(30 years on the knocker myself)