Re: more store closures and job cuts ahead in uk?

**Lioned** Tue 21 Feb - 22:21

No company can sustain 'financing costs' of £100mill for very long without selling something off if those financing costs are rising. Taking out a big loan at 11 % isnt very clever but i suppose if you need the money then thats what you have to do but its very short term in my view.
Manchester United maybe have debts of £80mill or so but they can finance that (apparently) but a change in their circumstances,like not getting into the Champions league,can make a big dent in that income and ability to keep up payments.
There can be a fine line between success and failure when you owe lots of money.

**Badboy** Wed 22 Feb - 0:02

malena stool wrote:Just got this of Google, Badboy.

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/9094359/Travelodge-pulled-down-by-100m-debt-finance-bill.html

Travelodge pulled down by £100m debt finance bill
The debt pile of Travelodge is costing the budget hotel group £100m a year in finance costs and dragging it deep into the red, according to company accounts.

Travelodge has not made a pre-tax profit since 2006 Photo: PA By Graham Ruddick
6:45PM GMT 20 Feb 2012
6 Comments
The costs highlight the challenges facing Travelodge as creditors meet on Tuesday to discuss its future.

The latest annual accounts at Companies House show finance costs of £99.3m in the year to December 31, 2010, including interest on bank loans of £39.4m and interest on eurobonds of £51.9m.

The finance costs booked by Travelodge are being inflated by a payment in kind (Pik) note issued in 2006 when the company was acquired by Dubai International Capital (DIC).

The £50m Pik note charges interest at 11pc above Libor and has already grown in value to £78m.

The charges mean Travelodge has not made a pre-tax profit since 2006. In 2010, the company lost £102.4m, despite earnings before interest, tax, depreciation and amortisation rising 5pc to £47.8m.

In the accounts, Travelodge says that its funding status "anticipates the company achieves rapid growth with debt repayment funded by either a refinancing or disposal event".

DIC bought Travelodge from Permira for £675m, backed by loans of £478m. However, those debts have now risen to £517m, plus £371m of eurobonds.

It is understood the fund owns 80pc of Travelodge, with management owning the remaining 20pc. DIC says it wrote off the value of its equity in Travelodge in 2008.

US hedge funds Avenue Capital and GoldenTree Asset Management, junior lenders to Travelodge, are now understood to be seeking to take control of the company through a debt-for-equity swap. This is expected to take months. However, as a first stage, the funds have agreed to underwrite a £60m loan to the hotel operator to ensure its future.

On Tuesday, the senior lenders, including Barclays, will be given the chance to fund the £60m loan. A spokesman for Travelodge said there is "no risk" of the hotel group going into administration.
Unquote.

It's often the opposite when spokesmen say that.

THANKS FOR THAT,MALENA STOOL.
TRAVELODGE ARE ALSO GOING TO SPEND £90 MILLION ON TWO NEW HOTELS IN LIVERPOOL.

**Badboy** Wed 22 Feb - 21:39

PEACOCKS HAS BEEN SOLD TO EDINBURGH WOOLLEN MILLS,SAVING SOME JOBS.
GAME TO CLOSE 35 STORES.
SEWARD(WESSEX) HAS GONE INTO ADMINISTRATION

**Badboy** Fri 24 Feb - 0:00

COMET,CO-OP AND CPP ALL TO SHED JOBS.

**AnnaEsse** Fri 24 Feb - 13:10

Driving down our main shopping street today, I noticed three shops closed or closing: Internacionale has closed; a company called Stonell has closed; bonmarché has a closing down sale on.

**Lioned** Fri 24 Feb - 22:56

I thought Internacionale where an Italian football team ! Anyway most high streets now look pretty much the same with only the big chains able to survive the high rents and rates.
Small shops/traders tend not to last very long.Down our local high street,which is pretty much a secondary position,some small traders have a go but never last long unless their business is suplemented by mail order/internet shopping.
Go to any shopping mall and its pretty much the same.Internet shopping has taken a great deal of business away although i think there are still enough who wish to go window shopping and try things on in the big stores like M & S etc.
And times are genuinely tough now,people dont have that disposable income at the moment nor the confidence to spend what savings they may have.

**Badboy** Fri 24 Feb - 23:57

I READ AN ARTICLE IN GOOGLE NEWS THAT MOST PEOPLE LIKE TO FEEL AND TOUCH ITEMS THEY WANT TO BUY LIKE FOOD.

**Badboy** Tue 13 Mar - 0:23

GAME MAY HAVE ONLY 2 WEEKS UNTIL BANKRUPTY,10,000 JOBS AT RISK.

**Badboy** Wed 14 Mar - 20:55

AURORA FASHION MIGHT LOSE JOBS.

**Badboy** Sun 18 Mar - 21:50

1 IN 4 STORES MIGHT NOT SURVIVE MARCH RENT DAY.

**AnnaEsse** Mon 19 Mar - 22:31

Walking round our shopping mall today, I noticed that La Senza had closed and Hawkin's Bazaar had gone into liquidation.

**Badboy** Mon 19 Mar - 23:38

AnnaEsse wrote:Walking round our shopping mall today, I noticed that La Senza had closed and Hawkin's Bazaar had gone into liquidation.

ONE OF MY CARERS SAID THAT SHE WAS TOLD THAT OUR LOCAL HMV IS GOING TO CLOSE DOWN.

**Badboy** Tue 20 Mar - 23:48

40% OF PRESENT DAY STORES MAY BE CLOSED BY 2017.

**Krisy22** Wed 21 Mar - 8:27

Lets hope the budget brings some long awaited good news for small businesses. Rates. car parking etc.... we need these small retail shops in our communities.

Guest Wed 21 Mar - 8:30

AnnaEsse wrote:Walking round our shopping mall today, I noticed that La Senza had closed and Hawkin's Bazaar had gone into liquidation.

Our high street's like a ghost town now. The hub of it used to be Woolies. Now it's all gone, all that's left are horrible pound shops and very expensive gift shops that only open for 6 months a year, for the tourist season. To get anything halfway decent you have to go all the way into Killie or even Glasgow.

**malena stool** Wed 21 Mar - 9:38

Bonmarche in Melton has finally closed its doors.

**malena stool** Wed 21 Mar - 9:41

By the way of encouraging more business and trading ventures to start up in Melton, the council has in its collective greed driven wisdom, increased its car parking charges...

**Badboy** Wed 21 Mar - 10:34

malena stool wrote:By the way of encouraging more business and trading ventures to start up in Melton, the council has in its collective greed driven wisdom, increased its car parking charges...

MELTON,ISN'T THAT THE PLACE WHERE THE COUNCIL WANTS TO OPEN A RURAL FOOD CENTRE?

**AnnaEsse** Wed 21 Mar - 10:48

malena stool wrote:By the way of encouraging more business and trading ventures to start up in Melton, the council has in its collective greed driven wisdom, increased its car parking charges...

Something similar has happened here. There are several large car parks in the town, but there used to be lots of places for on-street parking. Those places have just about all now been metered! So, why go into town and pay for parking when I can go to the out of town retail park, where there is a supermarket and most of the chain stores I'll find uptown and parking is free?

chrissie Wed 21 Mar - 11:44

Just read this on twitter:

r@v ‏ @TVRav
Reply RetweetedRetweet
Delete
FavoritedFavorite · Close Open Details BREAKING: GAME OVER. Retailer game is appointing an administrator.

**Badboy** Wed 21 Mar - 13:52

chrissie wrote:Just read this on twitter:

r@v ‏ @TVRav
Reply RetweetedRetweet
Delete
FavoritedFavorite · Close Open Details BREAKING: GAME OVER. Retailer game is appointing an administrator.

SORRY TO HEAR ABOUT GAME
PHILLIP GREEN IS GOING TO CLOSE DOWN LOTS OF HIS STORES.
HMV TO CLOSE 60 STORES
HALFORDS AND ANOTHER STORE(DIXONS?) TO CLOSE.
AT THIS RATE,ONLY PERHAPS 10% OF PRESENT STORES IN HIGH STREET WILL BE LEFT IN ABOUT 10 YEARS TIME.

**malena stool** Thu 22 Mar - 10:04

AnnaEsse wrote:
malena stool wrote:By the way of encouraging more business and trading ventures to start up in Melton, the council has in its collective greed driven wisdom, increased its car parking charges...

Something similar has happened here. There are several large car parks in the town, but there used to be lots of places for on-street parking. Those places have just about all now been metered! So, why go into town and pay for parking when I can go to the out of town retail park, where there is a supermarket and most of the chain stores I'll find uptown and parking is free?

The people who cause these increases are our elected representatives, just like our MPs who, once in power create new, money driven bye-laws, reduce council services while at the same time increasing council taxes because traders are closing down through customers shopping in supermarkets where parking is free or bus service routes are plentiful and regular.

**malena stool** Thu 22 Mar - 10:07

Badboy wrote:
malena stool wrote:By the way of encouraging more business and trading ventures to start up in Melton, the council has in its collective greed driven wisdom, increased its car parking charges...
MELTON,ISN'T THAT THE PLACE WHERE THE COUNCIL WANTS TO OPEN A RURAL FOOD CENTRE?

Yes Badboy, here's a link.
http://www.meltontimes.co.uk/news/business/rural-food-centre-would-be-our-crowning-glory-1-3623207#

Guest Mon 26 Mar - 11:47

Just been formally announced that GAME is in administration.

http://www.bbc.co.uk/news/business-17512143

**Badboy** Mon 26 Mar - 12:01

THE OTHER DAY ,I WENT INTO TOWN,BLACK LEISURE,MILLETTS AND HAWKINS BAZAAR STILL SEEM TO BE TRADING,EVEN THOUGH THEY ARE IN ADMINISTRATION,THE LIGHTS WERE ON AND I THINK THE DOORS WERE OPEN FOR PEOPLE TO ENTER TO BUY.
I HAVE BEEN TOLD BY MY BROTHER THAT OFTEN WHEN ADMINISTRATORS ARE APPOINTED,THE SHOPS STILL OPEN FOR BUSINESS AS USUAL.
PAST TIMES SHOP WAS COMPLETELY SHUTTERED.

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