High Street chain collapse sweepstake

[bilky asko]

Wait, Poundland got evicted by bailiffs? So I guess the rent wasn't getting paid? How on Earth could they not afford it?

Many big retailers make a lot of their profit simply by holding out on paying invoices for as long as they can and accruing interest on their cash balance. This is particularly prevalent in the discount sector - and indeed some stores historically made all their money by selling goods at or even slightly below cost and holding off on payments as long as possible (this is called the "baby shark" method).

When a commercial rent falls in to arrears, landlords can instruct agents to recover the property and goods/cash to cover the debt at no notice if they so choose. Poundland obviously played hardball and the landlords called their bluff.

Poundland are supposedly known for their prompt payments when buying stock, so presumably landlords are one area that takes the hit.

[barcode]

I would keep an eye out for Ladbrooks. To be fair its been eyed up by Paddypower for a takeover, and its believe with the new 5% increase on the profits from bandits, could push a high number of Ladbrooks to close down. Ladbrooks shares are 115.75p ( £1.15) While paddy powers is £50 quid, mind you it trades in euros.

[JAS84]

Never heard of Ladbrooks. I have heard of Ladbrokes though....

[all new Phil]

Never heard of Ladbrooks. I have heard of Ladbrokes though....

Good for you.

[Martin Phillp]

Not a collapse, but my local BHS in Reading has closed down in the last couple of weeks.

Unsurprisingly, due to the size of the shop, it's left a pretty big hole in the high street. I'm not quite sure what retailer will take the unit either - there's already a large Debenhams, John Lewis, House of Fraser, Primark and M&S here. And one of the Poundland stores here (which could be a likely candidate) got shut down by bailiffs last year.

Seems like a strange move to close it - the store had only just had a £2.5million refurbishment a few years back. That said - I can't remember the last time I ever bought anything in a BHS (aside from the occasional breakfast).

Fun fact: a woman once got locked in that particular store, having fallen asleep on the toilet.

I went into my nearest BHS at the end of last year and wasn't really surprised that it was still stuck in the 90s. The store wasn't busy either.

[barcode]

The BHS in Livingston also stock Burton and Evens ranges.

[Nick Harvey]

The BHS in Livingston also stock Burton and Evens ranges.

No odds then!

[Martin Phillp]

After quickly re-opening as a Vodafone store with the Phones4U shelves and desks using temporary signs, the Surrey Quays store is closed for a refurb.

[thegeek]

Westfield Stratford's Phones4u is becoming an O2 store. There's currently a hoarding across the front directing would-be customers to their nearest store, which is two floors below.

[thegeek]

Sir Philip Green has sold BHS to Retail Acquisitions.

http://news.sky.com/story/1443619/sir-p ... etail-firm

I give them twelve months.

[Martin Phillp]

Sir Philip Green has sold BHS to Retail Acquisitions.

http://news.sky.com/story/1443619/sir-p ... etail-firm

I give them twelve months.

Indeed. More retail space for Primark in areas where they and BHS don't compete.