Debenhams Is 'Winding Down Its Operations'

[El Cid]

1 hour ago, melthebell said:

I disagree, all these shops that are failing are having issues anyway and are failing to adapt, too big, too old. Most are in massive buildings that will be massively expensive to rent, run. they fail to adapt to change.

The pandemic is just the thing thats pushed them over the edge, they were slowly moving to the edge anyway.

Well Philip Green did well out of them and they did employ a lot of people, they even paid taxes, but perhaps they will need bailing out with their pensions.

Sir Philip Green is another one that needs his knighthood taking away.

[melthebell]

6 minutes ago, El Cid said:

Well Philip Green did well out of them and they did employ a lot of people, they even paid taxes, but perhaps they will need bailing out with their pensions.

Sir Philip Green is another one that needs his knighthood taking away.

Somebody mentioned yesterday that hes purely a money man, not somebody skilled in the art of shopkeeping (for want of a better word)

[geared]

Is he even a billionaire anymore?

 

From what I understand most of his net worth was linked to Arcadia, I'm sure he's got other investments and such, but totalling a billion?  I'm not sure.

[El Cid]

1 hour ago, melthebell said:

Somebody mentioned yesterday that hes purely a money man, not somebody skilled in the art of shopkeeping (for want of a better word)

Yes, I heard that.

Forbes, the American publisher, has pegged his and his wife Lady Green's net worth at $2.3 billion, placing them in 1,001st place on its global ranking of billionaires.

[lobster]

Debenham's has been tottering for years. It is a classic case of bought by venture capitalists take out as much as you can and load it up with debt . It was bound to happen eventually

[Baron99]

5 hours ago, lobster said:

Debenham's has been tottering for years. It is a classic case of bought by venture capitalists take out as much as you can and load it up with debt . It was bound to happen eventually

Well Sports Direct's Mike Ashley has dropped his bid for Debenham's, not wanting to pay £300 million for the business but there are still a number of other interested parties, including M&S, interested in taking some store sites but it does look as though the business & name will soon be gone. 

https://www.retailgazette.co.uk/blog/2020/11/mike-ashley-drops-out-of-debenhams-sale/

 

For a few years, even before the pandemic, Debenham's were always denying they were in financial trouble but a £491.5m loss in 2018, suggests otherwise? 

 

So more than likely, Sheffield is going to be left with a massive, empty retail unit at the top of The Moor, in what is a prime site.  Maybe a time  for M&S, W. H. Smiths or Boots to consider a relocation from the dying Fargate area?   Although the site is possibly too large for Smiths or Boots? 

 

If no large retailers are interested in the site, perhaps a consortium of smaller independents might? 

 

Also, let's not forget that there is a Dorathy Perkins' outlet just across the other side of The Moor from Debenham's, belonging to the Arcadia Group, which is also facing administration. 

 

 

 

Edited December 2, 2020 by Baron99

[El Cid]

2 hours ago, Baron99 said:

Well Sports Direct's Mike Ashley has dropped his bid for Debenham's, not wanting to pay £300 million for the business but there are still a number of other interested parties, including M&S, interested in taking some store sites but it does look as though the business & name will soon be gone. 

 

It will not be saved, because there are millions owed to the pension fund, so in that respect, this bankrupsy was caused years ago.

[PRESLEY]

 Its a shame,  I think it was the best we had in Sheffield for Quality at decent prices, better than jumped up and over priced  John Lewis, they should have name that store Dick Turpins,  infact,  no that wouldn't be right,  Dick Turpin had the decency to wear a mask,  ( the oldens are the best)  

[metalman]

If you ask me its problems started when it stopped being an actual shop and changed to being a collection of franchises.

[ECCOnoob]

44 minutes ago, metalman said:

If you ask me its problems started when it stopped being an actual shop and changed to being a collection of franchises.

Not sure about that. By their very nature all department stores are a collection of concessions under one roof.   Debenhams has been like that for at least 50+ years.

 

Let's also not forget that at some point in its history it was actually owned by the Burton Group (i.e. Arcadia) .  Its therefore no surprise a vast amount of its stock and concession operations were connected. With the collapse of one, the collapse of the other was inevitable.  

 

The sad fact is that Debenhams had lost its way for years. It didn't know what it wanted to be. They had far too many stores of mixed condition with some being compact clean modern looking  stores and others being huge outdated relics which has not been refurbished since the 80s.

 

A lot of their customer service was indifferent and their online offer was dull and too clunky.

 

The competition became fierce, their prices became less competitive and they couldn't decide whether they wanted to go after the the mass low-cost high-volume markets such as Primark and H&M or the smaller catchment of premium designer label market such as John Lewis or Selfridges leading to an awkward hybrid of £8 house brand shirts being sold alongside £90 shoes and £250 designer saucepans.  Pick a market lads.

 

I still have a hope that somebody will buy it and transform its more worthy stores into a into clear direction but whatever happens it is clear that the numbers of real estate is going to have to be severely culled otherwise it will die altogether.

Edited December 2, 2020 by ECCOnoob