Sports Direct Share Discussion Threads

[debsdowner] 17/8/2018 15:02

News just released House of Fraser was close to being sold for £1 before Ashley made his offer.



Ashley must be kicking himself the administrators took the view that is all it was worth.

So he has overpaid and its given him a huge headache as the company must be losing money by the hour and the suppliers are pulling out the stores and logistics XPO not allowing him access to their warehouse goods.

[debsdowner] 17/8/2018 13:16

Mint Velvet the latest to pull stock from HOF

There is speculation that XPO is owed "tens of millions of pounds", The Times reported, while Sports Direct sources told The Guardian said the XPO was being "totally unreasonable in terms of their demands" and was "refusing to engage in any process" .

Other House of Fraser clothing suppliers have taken action as they negotiate over payments. According to reports, fashion brands Jigsaw, Karen Millen and Mint Velvet have removed some stock from their House of Fraser concessions.

With Debenhams likely to default on debt according to Moody's Debenhams could be next to see suppliers play hard ball.

[debsdowner] 17/8/2018 13:04

Latest: Jigsaw and Karren Millen said to have pulled stock from House of Fraser



This what results in suppliers not getting paid, with XPO not allowing Sports Direct access its Warehouses this is causing further pain.

Debenhams could be next to be hit with supplier problems Moody's believe they will default on debt.

[debsdowner] 17/8/2018 11:50

HOUSE OF FRASER CANCELS EVERY ONLINE ORDER CUSTOMERS NOT HAPPY CUSTOMER LOYALTY EXTINGUISHED.

[debsdowner] 17/8/2018 11:26

One major brand considering pulling its brand out of HOF regardless of whether it gets paid.



Mike Ashley taken on too much to handle with HOF

- He has lost customer loyalty
-Sppliers already removing stock from store
-HOF no website up and running no buying online
-Sport Direct cannot get stock from Warehouses
-Landlord's may give Ashley notice to quit some been offered more rent by Philip Day

HOF must be losing millions at the moment things could go much worse Ashley will not be able to focus on Sports Direct he is in a serious amount of difficulties at the moment.

[debsdowner] 17/8/2018 11:17

Customer loyalty now extinguished.

[debsdowner] 17/8/2018 11:07

XPO got far bigger clout than Mike Ashley

[debsdowner] 17/8/2018 11:01

Not surprised at the share fall Mike Ashley bitten off more than he can chew with the HOF purchase.

HOF website down, customers unable to get their ordered goods, all orders online been cancelled.

XPO one of the worlds largest logistics companies refusing to allow Sports Direct from obtaining goods from warehouses.

Suppliers to HOF pulling stocks from HOF stores.

Landlords of some of HOF stores been offered higher rent by Philp Day.

[undervaluedassets] 10/8/2018 14:18

That is how he has built his business buying assets on the cheap.

He bought JJB sports for nothing and made an absolute killing.

[sportbilly1976] 10/8/2018 13:50

its being bought via pre-pack....does that give him leeway to re-negotiate new leases as all creditors go with the old-Co?

[costax1654x] 10/8/2018 13:14

Sosandar is booming anyone knows why?

[ignoble] 10/8/2018 12:39

Does he own Grace Brothers too
lol

[chiefbrody] 10/8/2018 12:30

Maybe he'll take all that overpriced stuff in HOF and sell it at a discount in SPD lol.I'd be interested in some gear at the right price :-)

[boonboon] 10/8/2018 12:13

With regards to existing leases he'll probably put something in there till the lease expires. Something like this https://www.brandsmax.com

[ltcm1] 10/8/2018 11:52

This is quite hilarious for anyone not holding SPD shares. I mean 6000 employees means dealing with the unions and TUPE means he is taking on all the redundancy liabilities.

Ashley thinks he's Philip Green when it comes to running department stores but in reality he's more Dominic Chappel. Green was a master of financial engineering but Ashley is very weak in that area, it is said he got rinsed for 100m when he bought Newcastle after not doing any due diligence. Then there is the disasterous punt on Debenhams shares.

Yes Ashley has done very well running Sports Direct but running 59 department stores is a completely different ball game. I mean HoF has been losing money hand over fist for years now, it's a total money pit.

Mike had a good business but now he's bet the farm on 59 ailing department stores!!!

[ltcm1] 10/8/2018 11:14

boonboon I get that but what about all the SPD shop leases???

SPD is taking on an enormous rent liability with these stores. Maybe it will work but there will be huge costs involved in the near term while he runs this enormous retail estate.

[quidzinn] 10/8/2018 10:48

Sports Direct said in a statement: "The group has acquired all of the UK stores of House of Fraser, the House of Fraser brand and all of the stock in the business."

Q

[sportbilly1976] 10/8/2018 10:42

boonboon,

concession stock would be owned by the stores imo (i.e not HOF) but in terms of store locations the HOF here in Manchester (city centre) is 6 floors in a prime location. SPD by contrast is in a dingy end of the 70's shopping centre.

I guess a question now is what does he do with the stake in DEB? surely a slight conflict here and I'd be shifting the DEB shares

[boonboon] 10/8/2018 10:30

Also I wonder how much stock and other assets he had got for the £90 million

[undervaluedassets] 10/8/2018 10:29

Re House of Fraser

see my post 5880.

he buys up the bankrupt at firesale prices. he will dump/flog/and strip what he does not want and then hang on to every last penny of value.

he has done it time and time again and made money. He will do it again here.

[boonboon] 10/8/2018 10:28

I don't see it as a disaster he's been looking for prime retail estate to consolidate the various brands.Take Milton Keynes for example, he's got a Sports Direct store and a USC store both of which aren't in prime locations. They could be merged into the current house or fraser store, which is in prime position and it would enable a more compelling offering in a better location.

[ltcm1] 10/8/2018 10:17

Amazed these haven't tanked. A disaster for Sports Direct holders.

[telbap] 10/8/2018 10:16

He has got to re neg the leases yet.....not a totally clear cut path.