Mike Ashley's Sports Direct buys the House of Fraser for £90m

[sealion]

You seem to be suggesting, "ah, well, nothing you can do but just accept that rich cunts will use the thing you love for their own devices, and if you're lucky you might get a few moments of tainted joy out of it in the meantime". I think people should have more ambition, and it's not delusional or ridiculous to ask for more from people.

I agree but i wasn't suggesting that, my reply to cs's post was about the cheap acquisition of a business by Ashley and not his products.

 

[hash tag]

Ive just read that because he bought HoF out of administration he is not responsible for their debts. Their "corporate" are somewhere around £350 to £400 million. Then there are the suppliers
some of who could be quite small and could go out of business as a result. I wonder if staff are owed back pay and if so, will they ever see it.

 

[MickiQ]

Ive just read that because he bought HoF out of administration he is not responsible for their debts. Their "corporate" are somewhere around £350 to £400 million. Then there are the suppliers
some of who could be quite small and could go out of business as a result. I wonder if staff are owed back pay and if so, will they ever see it.

I believe but am willing to be corrected is that any back pay that may be owed is the liability of the previous owners and will have to be paid out of the £90m (assuming that is enough) my understanding is that any outstanding back pay to staff has to be paid before debts to suppliers etc.

 

[hash tag]

Let's hope so.

 

[MickiQ]

Let's hope so.

As for pensions the HoF staff would appear to have lucked out since (unusually) their fund appears to have enough money in it for a change, probably for the best that Ashley is having nothing to do with it

House of Fraser: What happens to the department chain's pension scheme

 

[cupid_stunt]

As for pensions the HoF staff would appear to have lucked out since (unusually) their fund appears to have enough money in it for a change, probably for the best that Ashley is having nothing to do with it

House of Fraser: What happens to the department chain's pension scheme

However, from that link...

“They should get more than the PPF compensation because the scheme is well funded but the bad news is they won’t get the full pension promise.

 

[likesfish]

KPMG or whoever seem to swan in and make sure there’s just enough to wring out of the company to pay their fees and then they’re done.

Some bloke in our local rag today, barman at Cau, three weeks pay he was owed when they closed down, he got a cheque for 1p. The cunts.

I think I'd probably murder someone if they did that probably why my last proper job gave me two months wages to go "disgruntled ex military member of staff headline writes itself"

 

[Sasaferrato]

God knows how this will pan out and what he will do with it. Doesn't seem to have any thing in common with Sports Direct so is he going to run it as a standalone business or just asset strip it and keep the handful of decent locations for his 'sports' stores.

Have a look at what Ashley already owns, or has a major share in.

Sports Direct - Wikipedia

 

[Sasaferrato]

You make a good point, but how HoF presently operate is not sustainable.
Something has to change.

I was interested that it went bust and then he bought it, (the same day) how does that work?


Perhaps there is less need for fine dining than people think.

I heard an interview on the radio earlier where a punter was asked if they shopped in HoF and they replied yes, how often they were asked, once every six months came the reply.

I used to shop in Jenner's in Edinburgh every few months, for one thing specifically. Jelly Bellys. They had all the flavours separately, so you made up a bag of your favourites.

HOF bought over Jenner's, pre-packs only. Never been back. The assistant said I wasn't alone, many had come, observed and departed, having bought nothing.

 

[SpookyFrank]

It's almost like the invisible hand of the market was somehow not a force for good after all.

 

[hash tag]

Is Mike Ashley very different from Amazon in the way he treats his slave labour staff?

 

[Fedayn]

Sad bigot cunt has his tuppence worth. Said bigot os Mark Dingwall editor of Follow Follow Rangers fanzine and website. And an utter cunt of a bigot.

 

[Fedayn]

Can't help feeling that tweet's a bit 'sneery' at poor people?!

 

[weepiper]

Can't help feeling that tweet's a bit 'sneery' at poor people?!

Yeah, can see how it comes across that way without context, but that Twitter account is a spoof taking the piss out of posh New Town residents and their attitudes. Irony gets lost if you don't know that though.

 

[Fedayn]

Aaaah fair point.

 

[SpookyFrank]

Is Mike Ashley very different from Amazon in the way he treats his slave labour staff?

It's the new normal.

Ashley has made innovations though, such as having an agency office on site at his warehouse so he gets all of the benefits of in-house personnel management with none of the obligations that would come from actually employing the people who work for him.

 

[cybershot]

We mocked, but its happening, Sports Direct to move inside HOF.

Erm....

“We think the biggest and most important thing House of Fraser is missing is luxury brands. We think it will make a big difference,” he told the Sun.

Mike Ashley says he aims to keep 47 House of Fraser stores open

Pensioners are also likely to lose out under the deal. The House of Fraser pension fund has not been taken on by Ashley and so will be assessed by the industry-funded lifeboat, the Pension Protection Fund.

It is likely to be sold to a specialist insurance fund, but the higher costs involved in that process mean the House of Fraser fund could be more than £160m in deficit, so members yet to draw a pension will not get their full benefits.

 

[cupid_stunt]

We mocked, but its happening, Sports Direct to move inside HOF.

Erm....
Mike Ashley says he aims to keep 47 House of Fraser stores open

That doesn't surprise at all, TBH.

But, this pisses me off...

Sports Direct has written to suppliers, which were due to be paid this week, saying it would only pay them for money due after the administration. Suppliers, which are thought to be owed more than £60m, had hoped Ashley would honour their debts in the interests of good relations in the future.

The £90m paid by Ashley went towards paying House of Fraser’s bondholders and banks, with other creditors not expected to receive more than 3p in the pound from administrators.

One supplier told the Guardian: “It is very, very concerning. Ashley is trading the stores on the back of suppliers’ money. We were hoping he would give us back something.”

So, he's now selling stuff from suppliers that will never get paid more than 3% of what they are owed.

...and, even worst...

Pensioners are also likely to lose out under the deal. The House of Fraser pension fund has not been taken on by Ashley and so will be assessed by the industry-funded lifeboat, the Pension Protection Fund.

It is likely to be sold to a specialist insurance fund, but the higher costs involved in that process mean the House of Fraser fund could be more than £160m in deficit, so members yet to draw a pension will not get their full benefits.

 

[hash tag]

It's the new normal.

New normal my are, it stinks, which is why I try to avoid him and his I'll.

That doesn't surprise at all, TBH.
So, he's now selling stuff from suppliers that will never get paid more than 3% of what they are owed.

...and, even worst...

Surprised, not a bit of it. He is an arsehole and his is out there to make money, not be a charity or social services for the staff or suppliers.

 

[hash tag]

 

[cupid_stunt]

House of Fraser has said it will cancel all online orders and refund customers after a dispute with its warehouse operator meant deliveries were delayed.

It follows an outcry from customers who had not received goods ordered online.

Its warehouse operator, XPO Logistics, stopped processing orders late last week because of a payment dispute.

House of Fraser has told over 1,000 suppliers it will not pay money owed before 10 August, when Sports Direct bought the chain out of administration.

House of Fraser cancels all online orders

Personally, I don't blame XPO for taking that stand, unfortunate for the customers, but a nice kick up the arse for Ashley.

 

[SpookyFrank]

So Ashley now owns a shitload of stock that he hasn't actually paid for? And will retain the services of a load of workers whose pensions he's not going to pay for? All he actually had to pay for was liabilities to the banks?

Small wonder the rich find it so easy to get even richer.

 

[Teaboy]

Personally, I don't blame XPO for taking that stand, unfortunate for the customers, but a nice kick up the arse for Ashley.

Well yes. It would be an odd business decision to carry on working for a company that has publicly said they're not going to pay you for the work. Everyone should just stick the cunt on pro-forma.

 

[Pickman's model]

Well yes. It would be an odd business decision to carry on working for a company that has publicly said they're not going to pay you for the work. Everyone should just stick the cunt on pro-forma.

they should stick the cunt on something more painful

 

[hash tag]

Brilliant

Angry mum whose House of Fraser sofa never arrived devises plan to get it

 

[cybershot]

Apparently customers as well as stockists are getting screwed over with cancelled orders not being refunded.

House of Fraser U-turn - customers now WON'T get refunds for undelivered items

I don’t say the c word very often but Ashley truly deserves it.

 

[SpookyFrank]

It's just theft, plain and simple. Ashley will now be selling stock that has been paid for by, and thus belongs to, other people.

 

[Teaboy]

I get the feeling that Ashley foray into the higher end of the market is going to be a shambles. You can get away with a lot with a 'pile it high and keep it cheap' mentality. Look at the likes of Ryanair, Sports Direct is a very similar set up.

HoF is brands and top prices, if you want people to pay top dollar you need to build a brand and entire experience. HoF just about had that but he is rapidly dismantling it. If you were a supplier you'd be crazy to sell stock without payment upfront. If you were a delivery company you'd be crazy to deliver on-line business unless you had payment upfront. If you were a customer you'd be crazy to trust them by buying one of their gift cards ever again.

The whole thing is fucked.

 

[not-bono-ever]

He’s a twat but this isn’t unique to Ashley/ hof- standard advice when taking over a bankrupt business is to wash your hands of previous liabilities

 

[hash tag]

The customers bought stuff from a now bankrupt company, be it on line or in store. Sadly they are now just creditors who might be lucky if they get 5p in the pound. Their best hope is to claim against their credit card assuming that's how they paid for their stuff.
HoF was a quality department store that is no more. I certainly can't see Ashley keeping it that way. Once all the fuss has died down he will probably flog the assets off, sack the staff and wave bye bye with a tidy profit. I really can't see a future for it.