Debenhams Share Discussion Threads

[essentialinvestor] 10/8/2018 13:22

Philip Day, like Mike a billionaire, has made a fortune buying distressed
UK retailers and improving performance. Theo Paphatis has done something
similar, on perhaps a smaller scale.
Chris Dawson, the guy behind The Range is now a billionaire,
he started as a market trader, an incredible achievement. So there is huge money being made
in UK retail, ABF's Primark don't sell a single item online from memory.

With regards to Debenhams, Mike can just watch and wait surely.

[debsdowner] 10/8/2018 13:22

TRCML

Also Ashley will not be burdened with the bank debt!

Ultimately the banks will take a large loss.

Ashley will however have to take on pension liabilities I would have thought.

[trcml] 10/8/2018 13:16

"Ashley bought House of Fraser for the assets, he doesn't care about the business, he will strip it down and convert most into sports direct.He will probably do the same with Debenhams."

Or Ashley could use the HOF business and up-a-notch massive buying power to compete directly with Deb. run Deb into the ground - administration - then buy Deb on the cheap as with HOF. The advantage in buying a company in administration is not having to pay the suppliers more than a few pence in the £.

I read that Ashley's long-held ambition is to create a "Selfridges" of sport. HoF is a first step, combined with Deb would provide the platform.

[qantas] 10/8/2018 13:13

TTID That is why he is a billionaire and you are not.

Please do your own research.

[paa65] 10/8/2018 13:04

Some opportunistic traders took share price down 3% in the last minute before the 12 noon auction. But it has bounced back now.Think this will close above 12p today.

[american idiot] 10/8/2018 13:01

Oh dear...

HoF survive !

DEB needed HoF to completely disappear to benefit.

If it does'nt rain it pours for DEB.

[this_time_its_different] 10/8/2018 12:59

End of the day, if you buy rubbish, it doesn't matter what price you buy it at. I'd rather go and own Amazon stock than even consider touching Debenhams, House of Fraser or Sports Direct.

[debsdowner] 10/8/2018 12:55

BBC live:

12:36
Union: 'We fear for jobs' at House of Fraser
The Unite union has expressed its concern at Sports Direct's takeover of House of Fraser.
"Sports Direct is a leopard that has not changed its spots and we hope that its poor record on pay and employment practices are not transferred to the House of Fraser," said Unite regional officer Scott Lennon.
He said Sports Direct's record at its Shirebrook warehouse had been "dreadful", with low pay and poor employment conditions.
"The company does not want to engage in any meaningful sense with Unite at Shirebrook and this obviously sparks concern at the fate that awaits the House of Fraser staff under the new ownership," Mr Lennon said.
"We fear for jobs and employment conditions at the House of Fraser going forward. The staff are entering a period of great uncertainty and worry."

….

Comment:

MA will set about cutting costs and help with Warehousing which may give HOF a breathing space but the competition between retailers will still get tougher.


All these things take time to plan Rome wasn't built in a day, in the interim period Debenhams will still find it tough.

[debsdowner] 10/8/2018 12:46

The purchase by MA will not be the final figure he will need to dig deeper in his pocket to purchase Christmas stock.

The saga will play out a bit longer now, MA has a stake in French Connection as well, he may bid for that!

I still say Debenhams is a different kettle of fish. HOF has already done deals with its landlords Debenhams hasn't !

[this_time_its_different] 10/8/2018 12:30

Debs may have a lifeline from Mike Ashley, I don't see him letting his 30% stake go down the pan. However this will put more pressure on Sports Direct taking on all these staff and debt.

[qantas] 10/8/2018 12:30

No weakness today.

please do your own research.

[debsdowner] 10/8/2018 12:24

Vulcan,


I think your analysis flawed. At some stage Sports Gear will reach its peak just the same as coffee bars and fashion is fickle.


Share price of Debs still weakening the saviour of HOF will only increase competition in the short to medium term.


Debs is a different model to HOF its got multiples more stores on long leases.

[ltcm1] 10/8/2018 12:23

Hammering down now.

[this_time_its_different] 10/8/2018 12:22

bothwellbuyer.....we are all going to die either way, maybe you need to accept that. At 65, you still have a few years left in you for sure, but the truth is, you are most likely going to die before any 20 year old that shops with Boohoo today.

[bothwellbuyer] 10/8/2018 11:46

thanks to 'this-time-its-different' for foreseeing my premature death! Good to know that as a 65 yr old customer, I should stay clear of buying winter clothes!

[mreasygoing] 10/8/2018 11:38

Upped my holding here again.

[paa65] 10/8/2018 11:27

Great thought Vulcan. Reduce local competition whilst protecting his investment in both.Lets hope he's rational and does exactly that.

[debsdowner] 10/8/2018 11:26

BBC live:

Any hopes that on-target GDP figures for the second quarter would boost the pound have been dashed - it is down 0.37% against the dollar at $1.2777.
The pound is, however, up 0.20% against the euro at €1.1144.
Laith Khalaf, senior analyst at Hargreaves Lansdown, says: "A weak pound and strong dollar does have a tangible knock on effect on the UK economy, as we have seen from the wave of closures and profit warnings from the retail sector. Not everyone loses out from weaker sterling though, exporters and the domestic tourist industry should benefit, as do stock market investors, thanks to the international revenue streams of Footsie companies.
"However oil and other commodities are priced in dollars, which means higher energy bills and petrol prices for UK consumers, against a backdrop of weak wage growth, so the squeeze we have seen on discretionary spending looks like it has a bit further to run."
He adds: "All of this suggests the shackles are still on the UK economy, and that spells more or the same in terms of interest rate policy for the foreseeable future."

[vulcan2] 10/8/2018 11:20

Ashley already has 29.7% of DEB shares or 338 million shares. He will want his DEB shares to go up in value. He would be best served if HOF and DEB stores were distributed in such a way that they are not competing with each other. He could then add his sports goods to both.
Should be good for DEBS.

[debsdowner] 10/8/2018 11:19

Price weakening!

[qantas] 10/8/2018 11:13

TTID He is a billionaire and may do whatever he want to unlike you.

Please do your own research.

[this_time_its_different] 10/8/2018 11:08

Ashley bought House of Fraser for the assets, he doesn't care about the business, he will strip it down and convert most into sports direct.He will probably do the same with Debenhams.

[justiceforthemany] 10/8/2018 10:59

Ashley has paid £90M for a loss making store with huge debts about to fall into administration. He would be willing to pay a lot more for DEB where Denmark stores alone are worth £250M