Van der MoodHoover Posted April 9, 2019 Share Posted April 9, 2019 So another high street name folds - not especially surprising (given their business model and generally dated looking stores) and is handed over to the lenders. A novel quirk of this one is the fact that everyone's favourite overweight sweatshop owner is crying foul as his £150m equity stake has been wiped out, the company being turned over to its creditors (who will take all the residual assets leaving nothing for the equity holders). The tale is spiced up as the Board of Debenhams rejected Ashleys "rescue bid", which involved him injecting a further 150m, in return for the creditors being wiped out and the whole business being turned over to him - and he would become CEO to boot. Must have been a pretty tricky Board meeting and a potentially ballsy decision as I cannot imagine Mr Ashley taking a big loss lying down. But in the midst of all this, thoughts must in the first instance go to the affected staff who are the innocent party's in all of this and who stand to lose most as the inevitable closures start to roll across the country. And a great shame if Debenhams as a name disappears - used to visit the Bristol store as a child and sit on Santa's knee. That's probably banned by now anorl.....? Link to comment Share on other sites More sharing options...
Sith Happens Posted April 9, 2019 Share Posted April 9, 2019 3 minutes ago, HantsRam said: So another high street name folds - not especially surprising (given their business model and generally dated looking stores) and is handed over to the lenders. A novel quirk of this one is the fact that everyone's favourite overweight sweatshop owner is crying foul as his £150m equity stake has been wiped out, the company being turned over to its creditors (who will take all the residual assets leaving nothing for the equity holders). The tale is spiced up as the Board of Debenhams rejected Ashleys "rescue bid", which involved him injecting a further 150m, in return for the creditors being wiped out and the whole business being turned over to him - and he would become CEO to boot. Must have been a pretty tricky Board meeting and a potentially ballsy decision as I cannot imagine Mr Ashley taking a big loss lying down. But in the midst of all this, thoughts must in the first instance go to the affected staff who are the innocent party's in all of this and who stand to lose most as the inevitable closures start to roll across the country. And a great shame if Debenhams as a name disappears - used to visit the Bristol store as a child and sit on Santa's knee. That's probably banned by now anorl.....? No i think its still ok to go to Bristol. Link to comment Share on other sites More sharing options...
Coneheadjohn Posted April 9, 2019 Share Posted April 9, 2019 Shocking for the staff. Link to comment Share on other sites More sharing options...
Sith Happens Posted April 9, 2019 Share Posted April 9, 2019 In all seriousness it is shocking for staff. While I am sure 150 Million is not pocket change to Ashley, neither is it life changing losing it for him either. I think its 4 months they say people can be from losing their homes, I dare bet any redundancy packages will be bare minimum which isn't much. Then for those that can't just afford to take it easy they have the ignominy of going cap in hand to the job centre to claim JSA and get treated like something you would wipe off your shoe. Hopefully by the sound of it it will be sometime before any store closures so maybe a solution an be reached. No doubt there are lots of people with debenhams vouchers/gift cards that will be in a rush to get them spent soon as well. Hope for them, despite how little they may be worth in the grand scheme, that Debenhams honour them unlike some of the others that have gone into administration, seems like theft to me. Link to comment Share on other sites More sharing options...
maxjam Posted April 9, 2019 Share Posted April 9, 2019 31 minutes ago, HantsRam said: Must have been a pretty tricky Board meeting and a potentially ballsy decision as I cannot imagine Mr Ashley taking a big loss lying down. Nope, doesn't seem like it! https://news.sky.com/story/a-national-scandal-mike-ashley-attacks-debenhams-collapse-11688832 Link to comment Share on other sites More sharing options...
Sith Happens Posted April 9, 2019 Share Posted April 9, 2019 2 minutes ago, maxjam said: Nope, doesn't seem like it! https://news.sky.com/story/a-national-scandal-mike-ashley-attacks-debenhams-collapse-11688832 In fairness, although i cant claim to be anywhere near an expert, it doesn't seem that unreasonable what he was offering. 720 million debt, and he was asking the lenders to write off 82 million. Surely if the business folds they will lose much more than that. Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted April 9, 2019 Author Share Posted April 9, 2019 1 minute ago, Paul71 said: In all seriousness it is shocking for staff. While I am sure 150 Million is not pocket change to Ashley, neither is it life changing losing it for him either. I think its 4 months they say people can be from losing their homes, I dare bet any redundancy packages will be bare minimum which isn't much. Then for those that can't just afford to take it easy they have the ignominy of going cap in hand to the job centre to claim JSA and get treated like something you would wipe off your shoe. Hopefully by the sound of it it will be sometime before any store closures so maybe a solution an be reached. No doubt there are lots of people with debenhams vouchers/gift cards that will be in a rush to get them spent soon as well. Hope for them, despite how little they may be worth in the grand scheme, that Debenhams honour them unlike some of the others that have gone into administration, seems like theft to me. I think on the gift cards point that until you redeem it, you are legally treated as being an unsecured creditor. Which effectively means that you are not a priority and have no legal recourse. Firms that do honour them are those that have done a deal with their other creditors and see brand value in redeeming vouchers on an ex gratia basis. Link to comment Share on other sites More sharing options...
eddie Posted April 9, 2019 Share Posted April 9, 2019 38 minutes ago, HantsRam said: And a great shame if Debenhams as a name disappears - used to visit the Bristol store as a child and sit on Santa's knee. That's probably banned by now anorl.....? My uncle used to be Santa at Derby Ranbys/Debenhams. Link to comment Share on other sites More sharing options...
Sith Happens Posted April 9, 2019 Share Posted April 9, 2019 Just now, HantsRam said: I think on the gift cards point that until you redeem it, you are legally treated as being an unsecured creditor. Which effectively means that you are not a priority and have no legal recourse. Firms that do honour them are those that have done a deal with their other creditors and see brand value in redeeming vouchers on an ex gratia basis. Does make me wonder in the current age of businesses going into administration regularly why people actually buy gift cards. I remember Comet didn't honour them, makes me wonder what the law would have said had someone walked in dropped their 300.00 gift card on the counter and walked out with 300 worth of goods. Link to comment Share on other sites More sharing options...
Sith Happens Posted April 9, 2019 Share Posted April 9, 2019 2 minutes ago, eddie said: My uncle used to be Santa at Derby Ranbys/Debenhams. No thoughts about carrying on the family business? Link to comment Share on other sites More sharing options...
eddie Posted April 9, 2019 Share Posted April 9, 2019 1 minute ago, Paul71 said: No thoughts about carrying on the family business? What - and give away the best toys to ungrateful kids? They'll get a walnut, an orange and a whip and top if I had my way. Link to comment Share on other sites More sharing options...
Sith Happens Posted April 9, 2019 Share Posted April 9, 2019 2 minutes ago, eddie said: What - and give away the best toys to ungrateful kids? They'll get a walnut, an orange and a whip and top if I had my way. I have no idea what that means, but I dont like the sound of it ? Link to comment Share on other sites More sharing options...
eddie Posted April 9, 2019 Share Posted April 9, 2019 7 minutes ago, Paul71 said: I have no idea what that means, but I dont like the sound of it ? Link to comment Share on other sites More sharing options...
Ewe Ram Posted April 9, 2019 Share Posted April 9, 2019 I’ve been made redundant 3 times in my life. It’s like someone throws a bomb in the middle of your life. My sincerest sympathies go to the staff who have done nothing to deserve it. Link to comment Share on other sites More sharing options...
ariotofmyown Posted April 9, 2019 Share Posted April 9, 2019 Debenhams is one if the few shops I ever go to. Good range of men's clothes with usually decent prices. Saying that, I only go once a year in the Jan sales. Shame if it shuts down and all those staff lose their jobs. Biggest shop to go under since Woolworths? Link to comment Share on other sites More sharing options...
Ewe Ram Posted April 9, 2019 Share Posted April 9, 2019 I felt the writing was on the wall when I went to Leicester and they had such ridiculous reductions I don’t know how they do business. I got some £40 jeans for £10 and they’re now £40 again so I’m not buying more at that price. Most clothes were 70% off. Unfathomable Link to comment Share on other sites More sharing options...
eddie Posted April 9, 2019 Share Posted April 9, 2019 The Memsahib is very pissed off about this - it's one of the few high street places that produce a good range of 'petite' clothes. Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted April 9, 2019 Author Share Posted April 9, 2019 1 hour ago, Paul71 said: I have no idea what that means, but I dont like the sound of it ? It's why Eddie is on a register ? Link to comment Share on other sites More sharing options...
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