Mothercare Share Discussion Threads

[she-ra] 03/3/2018 09:47

I hope that happens for you Dealy.

[fenners66] 03/3/2018 01:01

I said " buying it off an administrator would be much smarter and likely not worth as much to anyone else"

(actually I had to add an f to the off there!).

Does not say "cheap"

But when have you known an administrator sell anything expensive ?

For example as a rule they start with fixed assets and take 10% of book value - their idea is supposed to be get the job done as quickly as possible and cover their own costs first.....

So the franchisee approaches the administrator day 1 - or even before day 1 (and that has happened) and makes an offer .... and says or do you want to wait for us to consider opening our books to a 3rd party , which we will not do, and then they can try due diligence, and you can wait some months and see if you get an offer......


Or do you believe that administrators work solely for the creditors to extract the best possible price for everything no matter how long it takes all the while working for free?

[terminated] 03/3/2018 00:17

Fenners: so in administration they would buy it cheap you say? So no other business would be sitting around saying 'hey look there is a profitable franchise up for offer which as a minimum generates 17m of profit, and they are obligated to pay the fee due to the franchise agreement, I'll just let it pass. Meanwhile the franchise business picks it up.for a song.... Don't get me wrong, it could happen, but numbers are numbers and money is money. Someone would love to get there hands on the consistently profitable operation. The people on the franchise are locked in. They can own it or someone else can.

[terminated] 03/3/2018 00:07

Jeeze. Seriously. You know you quote esp and other financial constraints that you probably picked up from some website and it make you look midly intelligent. But then you give your own opinion. Same on spd board. I initially thought you really knew your stuff, but that you gave your own opinion and it was obvious you sit in your pants with pencils up your nose.So you say they bought the shares so they would keep there bonus? So if they never invested money they would have lost there bonus?

[fenners66] 02/3/2018 22:36

Then buying it of an administrator would be much smarter and likely not worth as much to anyone else...

[terminated] 02/3/2018 21:59

And they would not need to back this management. They coukd have no faith whatsoever and still try to secure the full rights to their business.

[terminated] 02/3/2018 21:57

Fenners: if I was a franchise holder I would have a chance to aquire the full licence for my business. Russia and the Middle East always make a profit and are successful businesses independent of the UK operation. Would I rather it went into administration and have the licence pass to an unknown buyer who might renegotiate terms in their favour.

[fenners66] 02/3/2018 21:56

Its embarrassing being in their position and not seeing this coming hence my comment about management that would struggle to predict the outcome of a 1 horse race.

[terminated] 02/3/2018 21:51

So you're saying he and the finance director spent a total of 270 thousand knowing what exactly? That they would loose it? I don't get your logic?It's Friday night of course I've been drinking...

[discodave4] 02/3/2018 21:40

Terminated It was only two months ago they were saying £1m-£5m profit and no problem with covenants when it was obvious they were likely to breach (go above £50m was my guess) and don't you think a five-fold forecast range was somewhat dubious, they knew in Jan what was released today IMO.Have you been drinking?DD

[fenners66] 02/3/2018 21:29

If you were a franchise holder would you put in £m's of good money after bad , backing management that would struggle to predict the outcome of a 1 horse race?

[discodave4] 02/3/2018 17:41

5p coming Yumpy

[dealy] 02/3/2018 16:49

Private equity takeover candidate

[yump] 02/3/2018 16:08

I disagree. 11.75p coming.

[imastu pidgitaswell] 02/3/2018 15:15

Whenever they switch to 'stakeholder' rather than 'shareholder', it's gone.

And they have just done that.

"We are working together with all our stakeholders, including colleagues, franchisees, financiers, suppliers and pensions trustees on this next phase"

[fenners66] 02/3/2018 14:12

Shopping has changed - just like canal travel and newspapers tomorrow
You move with the times - cut costs or die.