Scs Upholstery Share Discussion Threads

[pre] 12/6/2008 09:38

could see a sharp recovery here....fall does look overcooked this morning considering the hefty drop yesterday imo, dyor etc:-0)

[shutittrev] 12/6/2008 09:33

I blame that guy from spandau ballet.

[topinfo] 12/6/2008 09:21

Someone turn the lights off on the way out. I blame this Labour government, just look at the mess they have made of the economy since they came into power...a real disgrace. Banks, Housebuilders, Major Retailers all going under.!!!!

[isis] 12/6/2008 09:09

The Fat Ladies sitting on the Sofa.

[davidosh] 12/6/2008 00:09

Warrenc....Agreed totally and to be honest I have been short in both for months but had mainly targeted LAN. I think the problem with the credit insurance is that most of the suppliers use invoice discounting to ease their cashflow rather than taking big overdrafts. The insurance that is required with that discounting is not now available to cover SCS as a customer so they need to look at alternatives.

All the suppliers will now be on amber alert if not effectively requesting cash payments on delivery. Retail customers will also be hearing the rumours and avoiding the fear of being let down and possibly losing deposits. I remember the demise of Courts and the way salesmen fobbed me off with excuses for the non arrival of furniture that had been due within six weeks but became twelve then POP !!

The next few months will see lots of companies disappearing from the high street and the industrial estates...Now how sharp do you think those quarterly rent collectors are likely to be in a couple of weeks !?

[farnesbarnes] 11/6/2008 23:29

like Barratt n Taylor Wimpey

[warrenc] 11/6/2008 22:46

I work in the furniture sector and most products are purchased from abroad . Therfore NO suppliers from outside the UK will take the risk of supplying without credit insurance . Several uk manufacturers may take the risk ie - Kevin France Upholstery , Lebus Furniture or ACL as these all need SCS or they go out of business . These problems tend to have a domino effect and SCS need a miracle to get out of this . Imagine all the bad press reports tomorrow . What few customers there are will be reluctant to spend at SCS and existing customers will be in stores tomorrow trying to cancel and get refunds . It dosen't look good which is a shame because SCS have a good business model . They just over expanded in a credit rich false economy . People talk about which will go between LOL and SCS . At this rate I can see both of them going .

[arthur_lame_stocks] 11/6/2008 21:56

But if their suppliers need credit insurance as part of their own working capital financing, what then?

[loganair] 11/6/2008 21:41

Arthur - It just means that suppliers are not insured when selling to SUY.They say that buying form their suppliers is unchanged.

[csmwssk1] 11/6/2008 21:21

and sell them to who?

[doowle] 11/6/2008 19:52

I'll just buy the sofas off the liquidators when they go broke.

[csmwssk1] 11/6/2008 18:39

logan, it may be for you, bb. has tanked that much what the hell is another grand eh?

[loganair] 11/6/2008 17:45

The most optimistic part of the statement:

Dresdner Kleinwort "The outcome is impossible to predict at this stage -- we think ScS can survive this, though its chances just got seriously worse."

If ScS is able to survive, anyone buying in at these levels is likely to make bags of dosh in the long term. But that's a big IF....

Is it worth putting in £1k, just to see what happens????

[m.t.glass] 11/6/2008 14:51

"..ScS, which has almost 100 stores in the UK, has 14 furniture suppliers. It is understood that five suppliers have been affected by the withdrawal of insurance..."

[grigor] 11/6/2008 11:00

Noticed a lot of desperate TV adverts from many furniture companies

[kiwihope] 11/6/2008 08:47

At least they advised the market. Land of Leather had its facilities withdrawn and it didn't!

On its own this does mean the company is going bust but it does indicate the crunch is getting tighter and there is not going to be any easing soon. The future doesn't look very good ...

[sans souci] 11/6/2008 07:39

Looks like the shutters are about to be pulled down on this one?

[m.t.glass] 11/6/2008 07:05

For Immediate Release 11 June 2008


ScS Upholstery PLC ("ScS" or "the Company")


Credit insurance


Following the publicised withdrawal or tightening of credit insurance terms for the
furniture retail sector, the Company has been
notified that one company has withdrawn credit insurance for ScS, affecting the working
capital facilities of some of our principal
suppliers.
ScS is in discussions with each of the suppliers affected and is continuing to trade with
them in the normal course of business whilst
various financing options are being reviewed.

The Company will issue further announcements as appropriate.

[darrin1471] 06/6/2008 18:55

CSMWSSKI ref:361
I would also doubt that a LAN receiver would get much back on "£28m in property, plant and equipment". In boom times stores often have to pay a premium to secure a site and its value can increase if the site is popular or on good lease terms. In a retail recession the lease can become a liability rather than an asset.

[m.t.glass] 06/6/2008 17:43

Furniture Village defies slowdown with record year

Published: 06 June 2008 17:14

Furniture Village has bucked the trend in its market to post its best ever profits and volumes for last year.
Unaudited management accounts show the retailer increased order intake by 7 per cent like for like to £220 million for the year to the end of March, when adjusted profits before interest and tax rose £1.1 million to £7.4 million.

Finance director Ed Duggan said the performance was down to sales training, better product mix and availability and reduced damage and waste.

However, he said current trade was "very tough", adding: "We are in line with internal targets, but to achieve this we have to fight and be more imaginative."

Furniture Village's fortunes contrast with Land Of Leather and ScS, both of which have endured torrid trading.

It emerged this week that credit insurer Euler Hermes had withdrawn cover from Land Of Leather suppliers.

(retail-week.com)

[csmwssk1] 05/6/2008 23:15

the one that gets me though is £20m goodwill, brand and software, that means its all worthless, like lol says in its last annual report that they have valued the land of leather brand at just over £12m, why not 5p or £50m?, brand is worthless unless someone offers to pay for it.

[csmwssk1] 05/6/2008 23:10

these will not pick up any lol stores, they will pick up very little if any of lols lost sales, they are in the middle market unlike lol who are in the bottom of the market, argos will be the biggest beneficiary of lol going bust, scs no longer have 12m cash, if you read the last statement they had just over 4m with a burn rate of 2m a month, by that they will make it till the end of june, end of july is not looking good, its a shame for them as if they could get even small financing, a ri might be a good idea and kept costs under control they could make it till end of august for the pre xmas sale period, unfortunatley i dont the management are good enough and thats why they are here, store expansion should have been knocked on the head when they realised they had falling like for like sales across the board, at that point they should have realised the business model was not correct for the market, or that the market was deteriorating, looks like lol will go first, scs will be right behind, dfs will benefit from scs the most, many other furniture retailers will be saved by these two going.

[robizm] 02/6/2008 19:31

What i am saying is they have 52 mill creditors and 40 mill debtors approx,

[darrin1471] 02/6/2008 18:58

LANs net assets are £26.7m. This includes £28m in property, plant and equipment, and £20m of intangible assets (goodwill, brand and software)
Manufactures are not going to supply goods if they can not get insurance. Credit card companies are not going to release payments until goods have been delivered. Without credit are LAN solvent?
Leather is a fashion in sofas and it is much easier for SUY to sell a leather sofa than it is for LAN to sell a fabric sofa.
Will SUY pick up enough business from the closure of LAN to survive. Will they need to refinance and or even pick up any of LANs old stores.