Falling like flies

[parklifeclothes]

Adams kidswear poised to go into Administration, MFI & Woolworths are history, Whittards saved by skin of their teeth, Debenhams £1billion in debt and forcing suppliers to extend terms from 90 to 96 days & JJB Sports all over the place. I think there are going to be many more big names rapidly disappearing.

The one thing all these failing companies seem to have in common is they change hands like there's no tomorrow and for some that really is the case.

Could it be the case that independants have are less exposed to risk and able to adapt to changes in spending habits quicker and will ride out the storm, here's hoping!

[RuralWeb]

Adams kidswear

They used to have an Actinic website

[parklifeclothes]

Should have stuck with it then!

[chris ashdown]

What we ourselves have so far learnt, is that we have had to bring on a few more suppliers to cover any one loss in the supplier chain, we started with the one big supplier who supplied over 80% of our stock, but now have reduced this to about 60% and hopefully 40% by middle of January

Otherwise if they go , you go with them

Trouble is that you end up with competing products that can confuse the public especially online where they may go else where to resolve the problem, but you need the max buying power with each supplier to get your margins up

[Mike Hughes]

Yes. Supplier problems was what killed Zavvi (previously Virgin Megastore). They bought all their CDs, DVDs etc via Woolworths distribution arm and when they ran into trouble they couldn't get the stock from anyone else (at least not on the same terms which could also be - probably was - another part of the problem).

Mike

[bamboo]

You have to wonder the about the wisdom of the Virgin Megastore buyout.
IMHO Zavvis owners didn't understand their market or at least where it is heading. Downloads and streaming are rapidly replacing CD and DVD at an ever increasing rate.
The name change from Virgin Megastore ,easily recognised and trusted by the consumer, to Zavvi, with no brand recognition and no track record was foolish at best.
Finally you have to consider the banks in this debacle. Given the obvious flaws with the buyout why did they fund it?
I guess greed and incompetence got the better of reality and common sense. I have to believe that somewhere in banking these fundamentals actually exist. Mind I still believe that some politicians are honest so I many be way of base on this!

[pinbrook]

You have to wonder the about the wisdom of the Virgin Megastore buyout.

Exactly, Richard Branson is hardly likely to sell a business that is doing well and has good long term prospects...

Recently a friend of mine sold her bar in Spain, the new owners (english) were very enthusiastic, didn't do their research, rebranded the bar and reopened - now 6 months later i walk past the bar each day and am yet to see them open. My friend on the other hand now rents a bar in a better location and laughs herself to sleep everynight

[RuralWeb]

It was a management buy out that cost £1 so it was worth a punt. I'm sure the directors made a few pounds !

[bamboo]

It was a management buy out that cost £1 so it was worth a punt. I'm sure the directors made a few pounds !

Ltd Companies & PLC'c clearly have their uses