Who is to blame?

[bamboo]

Woolworths and MFI both fall into the arms of 'administration' later this evening so who is really to blame for their demise?
Is it the American banks for setting the crunch ball rolling by lending to people who they new would never be able to pay the money back?

Is it the two companies boards for being incompetent?

Is it the two companies banks for getting twitchy and calling in loans?

Is it the fault of Mr & Mrs Public who simply chose to spend their money elsewhere?

Or lastly is their imminent demise simply part of the boom and bust cycle that the market led economy seems to generate?

I've been trying to figure it out all day for no good reason other than trying to predict which 'big' company is going to the wall next. (A bit of a competition with my accountant if the truth be known) What do you think?

[leehack]

I think both of those companies have been on the downward slide for quite some time, long before the latest crunch. This is retail's natural cull and brands like theirs are welcome in the dustbin as far as i am concerned. They have a reputation and their name depicts a much bigger and more successful company than what they really are. If we see Marks & Sparks, Comet or an IKEA capitulate, it would have far further reaching consequences.

As to what caused it, many things, the facts that houses were earning more than their owners and the sub prime debts from the USA are big players IMO.

Just like in nature, when the slow or injured wildebeest get caught, leaving just the strongest to survive, this is a fantastic thing for retail IMO, because in 'boom' too much crap can survive. I want the best of the best, not a sea full of crap in other words.

The vat reductions recently announced are not for now IMO, they are more to kick-start sales in the future, once the recovery starts, just before the rates are returned back to normal.

[leehack]

Oh and the next big one will be Argos (I hope), then Cousins and for my last guess - DFS.

[bamboo]

I too fancy Argos as 'shopping for it' has become synonymous with 'shopping for crap' IMHO.
I would love DFS to fall simply to get rid of those annoying adverts.
Perhaps DFS will lead to a whole pack of sofa clones going south.

I agree that bad companies fail in 'harsh times' and so they should.
Do you fancy any of the big estate agents to go to the wall next?
I have an inside line to the housing market through a friendly mortgage advisor of my acquaintance and he said that his good buddy (who owns a tiny independent estate agency) has seen an increase of over 300% in the number of repossessions he is being asked to shift during the past month.
My money is on the Halifax estate agency being the first to go.

[guccij]

The only people to blame for the demise of Woollies and MFI are the companies' respective managements.

I haven't shopped in MFI for about 20 years - at around the point when Ikea stamped its big Scandinavian feet all over the UK home furnishings market. MFI didn't notice, didn't care, and is now rightly paying the price.

We have a Woolworth's near us. It's filthy. The stock is sh!te and piled up any old how. I've never bought pick and mix there since I saw a feral child putting its filthy paws and god knows what bodily fluids all over the sweets. Again, a company which didn't care about its customers and failed miserably over many years to adapt to a changing market.

No doubt some will blame the recession - not me. I shan't mourn their passing. Good riddance.

I'm sorry for the staff though - let down badly by a weak management.

I too hope DFS is next, along with DSG (Dixons as was), Argos, whoever own the FootLocker and similar, and Tesco (yeah I know, I can dream).

[george]

I saw a feral child putting its filthy paws

Thats harsh.

Oh, and I like Argos for a number of reasons.

*hurrah for the lower classes*

[TraceyHand]

Thats harsh.

Oh, and I like Argos for a number of reasons.

*hurrah for the lower classes*

ditto, G

[guccij]

*hurrah for the lower classes*

Bet you don't vote Labour though

[george]

Why would that be relevant? Seriously, I've missed any potential connection there. Please enlighten me.

[Mike Hughes]

Please enlighten me.

George going all polite and posh. A danger sign if ever I saw one.

Mike

[TraceyHand]

George going all polite and posh. A danger sign if ever I saw one.

Mike

I got scared and hid!

[Darren B]

Argos wont vanish soon, they have a system that works and to be honest i doubt it would work for others. One big plus for Argos is the reserve online thing.

Screwfix - opening all these argos type shops all over the place, they never seem to have what you want and have to order it in which can take a couple of weeks. So ermm order online as always, these places cost them a fortune in rent and rates

[grantglendinnin]

We're All To Blame.

[TraceyHand]

It was HIM

*points to the person sitting on her left*

[Mike Hughes]

points to the person sitting on her left*

* Hand ?

Mike