Debenhams Share Discussion Threads

[robot ic1] 10/8/2018 15:52

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DEBENHAMS RALLIES AS SPORTS DIRECT BUYS HOUSE OF FRASER.
(Sharecast News) - Debenhams was on the rise on Friday as Sports Direct - which has a 30% stake in the department store chain - announced the acquisition of House of Fraser.
Sports Direct said in a statement that it has agreed to buy House of Fraser from its administrators for £90m in cash.

Commenting earlier on reports that Sports Direct was nearing a deal to buy HoF, Neil Wilson, chief market analyst at Markets.com, said: "This would be an exciting development for the retail sector as it could effectively consolidate the two troubled department store chains into a single offering. This appears the only viable solution; combining the operations to reduce overheads and stop competing against each other after a pretty brutal period of sales that has hammered margins."

Back in July, Sports Direct posted a big drop in annual profits as it took an £85m hit from its Debenhams stake. The retailer said pre-tax profit fell to £77.5m in the year to 29 April, from £281.6m the year before.

At 1011 BST, Debenhams shares were up 2.2% to 11.7p, while Sports Direct shares were down 0.1% at 406.30p.


Debenhams is a great store outlet , with great dedicated staff, everyone is pulling their weight and this big ship will turn round in these choppy waters and sail into the calm seas allowing the share price to rocket upwards .

You watch how the share price rockets upwards in the coming weeks .

Do your own research always and do not rely on others to help you make decisions.

[ltcm1] 10/8/2018 15:46

Only on paper though, it's not cash in the bank like Sir Philip Green.

His results outside sports retailing have been very mixed.

Look how much he has lost on Debenhams buying at 70p!!!

In Mike we trust????????????????

[qantas] 10/8/2018 15:15

He is a billionaire and knows what he is doing.

That's why he is a billionaire.



Please do your own research.

[ltcm1] 10/8/2018 15:12

I do feel Ashley has completely "lost it" and has done this because he wants to be the king of retail and have his ego stroked like what happened with Sir Philip Green.

I mean all the HoF Christmas buying must have been done, it is only a few weeks before they take physical delivery. This is a big machine he has bought and change won't happen overnight. Integrating the two businesses is no easy task.

[qantas] 10/8/2018 15:03

Better they are not sold.

Please do your own research.

[debsdowner] 10/8/2018 14:57

Mike Ashley will not bid at moment unless leases are sorted imo!

[debsdowner] 10/8/2018 14:56

Yes but they aren't sold yet and may not fetch the sum mentioned.

BREXIT can do an awful lot of damage.

So I say 10 pence and no more at present just like Liberium.

Debs got negative worth at moment unless they can get out of long leases.

[qantas] 10/8/2018 14:53

debsdowner but you do know just the six store in Denmark are worth 200 to 250 million in sterling.

Share price has been plundered by shorters doomed to failure.

Please do your own research.

[debsdowner] 10/8/2018 14:36

it,

Debenhams may be in profit but that profit keeps falling and I cannot see all stores making a profit with its large portfolio.

Debenhams must be close to a breach of bank covenants to consider selling its most profitable outfit!

[diku] 10/8/2018 14:20

Me thinks MA will turn some stores into Hotels/Leisure...

[hooley] 10/8/2018 14:17

Keep in mind Ashley has written down his 30% stake to 40p a share from 80p.

[ltcm1] 10/8/2018 14:08

Terminated Debenhams is currently in profit though! A CVA is only possible when there is some sort of crisis situation.

Anyway is it really the answer? A huge amount of staff to payoff, reduced buying power, it might not make the situation much better for shareholders. Not many CVA's are successful.

[diku] 10/8/2018 14:03

A little too late...Amazon is close to $1 trillion company...bring in tech/online tax...world is full of online technology...


Chancellor Philip Hammond considering 'Amazon tax' for online retailers to help high street retailers.

[debsdowner] 10/8/2018 13:57

John Lewis ups the anti as it goes for a major revamp:



Debenhams is having to take things far more slowly its not got the cash!

[terminated] 10/8/2018 13:56

Absolutely the CVA is needed now and I don't understand why they are delaying it. They could slash rents drastically, close loss making stores without incurring losses and address pension deficits. I mean why would they choose not to do this? It is clear they are going to struggle going forward if they don't do it. I would certainly supports a rights issue if they did that simply because of the profits it turns out on floor 1. They have to accept the homeware department can never compete with online retailers, but I do believe the clothing side could be turned around. I also think the government need to provide free parking in town centres at weekends to encourage traffic. I think you woukd be amazed how many are put of going in for a browse knowing tbey will have to pay a fiver even if they don't buy anything.

[debsdowner] 10/8/2018 13:50

Vulcan,

What is going to happen to all HOF stock in the meantime?

You are not thinking straight, these things take time to prepare and deal with after he has taken account of current sales projections, which shops are worth saving which are worth converting.

Even if many were to still close the gear would have to be sold.

I suspect he wont do too much before Christmas but still look to buy Christmas stock and see how it performs under his control before any major closures this year or conversions.

These things need planning they cannot be done overnight.

The Debenhams Gyms are being rolled out very slowly indeed in case the plan backfires!

[vulcan2] 10/8/2018 13:45

Chancellor Philip Hammond considering 'Amazon tax' for online retailers to help high street retailers.

hxxps://news.sky.com/story/chancellor-philip-hammond-considering-amazon-tax-for-online-retailers-11468623

[vulcan2] 10/8/2018 13:43

From BBC news "It is known that Ashley will turn some of the HOF stores into Sports Direct". Good news for DEBS : over 30 HOFs stores to close (that was already in the plan before Ashley bought it), Some of the remaining to turn into Sports Direct. Hence less competition for DEBs. DEB Share price should go up.

[qantas] 10/8/2018 13:40

TTID So so angry one bad loser.

Please do your own research...

[debsdowner] 10/8/2018 13:39

Mike Ashley will not take on Debs massive store portfolio and long leases before a CVA imo. Look at his approach with HOF he waited while it hit administration:



Kate Hardcastle from the retail consultancy Insight with Passion, told the BBC that Sports Direct's rescue of House of Fraser "is a big move and I'm sure lots of people will be breathing a slight sigh of relief that the name House of Fraser isn't disappearing from the high street altogether".
However, commenting on the pairing of Sports Direct and House of Fraser, she says: "I can't imagine that the business or indeed its offer are going to be similar to that people know or recognise as House of Fraser - this is someone who deals very much in the discount market."
She adds that Mike Ashley was unlikely to keep all the stores he'd just bought: "It is an interesting development. I don't think it will be the full portfolio of property. I think it will be the stores that are trading well that he carries forth."

[hpcg] 10/8/2018 13:37

justiceforthemany 8277 - came to write exactly that. But he will do so in a way which is best for him, and not necessarily for other shareholders in DEB. If I were he I would want locations with no department store competition, the lowest possible rent, but a decent high traffic position in the locality. Nor would I want duplication of brands or a differing value proposition across the estate. At the least watch HoF close the stores where the DEB property is superior, and as the major shareholder in DEB also plus the opposite. With landlords starting to get upperty about CVAs it might mean the latter has to do so through administration, but who knows.

[essentialinvestor] 10/8/2018 13:28

Justice, if Mike wants Debenhams, do you think he will pay a penny
more than he needs to?, He can sit back and wait imv.
That's if he even wants the entire business.

[knigel] 10/8/2018 13:25

Dangerous to go down market with HoF. Best to have a floor for Sports Direct as remember most HoF stores will already have a Sports Direct nearby. Too soon to say how this impacts on Debenhams.

[american idiot] 10/8/2018 13:24

More like Ashley will have a lean debt free HoF to use to undercut DEB with ;-)

[justiceforthemany] 10/8/2018 13:23

Ashley will buy Debenhams next and merge the two.