Companies That You Expect to Disappear Soon

[cactustwirly]

Typhoo Tea's days look numbered. Can't say I'm entirely surprised, they were always my least favourite of the main UK tea brands.




https://www.bbc.co.uk/news/articles/c5yr22qq5q8o

We had some in the office once and it tasted like brown dishwater.
Was glad when the teabags were restocked with Yorkshire Tea

 

[Mcr Warrior]

Would have thought that Typhoo ought to have had some insurance cover with regard to the trespass incident at Moreton last year? The Wirral factory was mothballed, wasn't it? The problems can't just be down to that, can it?

 

[Mojo]

I’m more surprised that Typhoo is a standalone company; I’d have thought it was just a brand owned by one of those FMCG companies like Unilever.

 

[Statto]

I’m more surprised that Typhoo is a standalone company; I’d have thought it was just a brand owned by one of those FMCG companies like Unilever.

Typhoo has had a few ownership changes over the years, was owned by Cadbury Schweppes, then Premier Brands, which became Premier Foods, it's now owned by a private equity firm

 

[Sun Chariot]

The private sector's casualties this month, make for rather depressing reading; coupled with stagnant UK growth (July to Sept) and the scale of reduced vacancies and increased unemployment.
This LinkedIn post includes links to BBC and to HM Office for National Statistics' data; as well as quoting impacted UK orgs that also feature (with source links) upthread:

Another dark day for the UK's private sector. My heart goes out to those affected by the recent announcements from Connectix Cabling Systems, Direct Line, Homebase, Asda, Typhoo Teas, Post Office… | Duncan Smith

Another dark day for the UK's private sector. My heart goes out to those affected by the recent announcements from Connectix Cabling Systems, Direct Line, Homebase, Asda, Typhoo Teas, Post Office branches, plus those impacted today from another medium sized retailer.. Some of the casualties I...

www.linkedin.com

 

[simonw]

The private sector's casualties this month, make for rather depressing reading; coupled with stagnant UK growth (July to Sept) and the scale of reduced vacancies and increased unemployment.
Stats and LinkedIn post here:

Another dark day for the UK's private sector. My heart goes out to those affected by the recent announcements from Connectix Cabling Systems, Direct Line, Homebase, Asda, Typhoo Teas, Post Office… | Duncan Smith

Another dark day for the UK's private sector. My heart goes out to those affected by the recent announcements from Connectix Cabling Systems, Direct Line, Homebase, Asda, Typhoo Teas, Post Office branches, plus those impacted today from another medium sized retailer.. Some of the casualties I...

www.linkedin.com

You have posted an advert to the guys business:

"If your organisation or your client has a need for the "value adds" offered through Business Relationship Management, Demand Management and Value Chain Analysis, then please do get in touch. "

This isn't what this thread is for.

 

[DavidGrain]

Typhoo, which was founded in 1903 by Birmingham grocer John Sumner, was once one of the UK’s best-selling tea brands. Sales have struggled in recent years as many Britons have switched to coffee, energy drinks and novelty drinks such as bubble tea.

Revenues at Typhoo fell from £34m in 2022 to £25m last year, while losses ballooned to £38m from £9.7m a year earlier, according to publicly available accounts. Typhoo said it was forced to swallow £24m of exceptional costs in the 2023 financial year.

 

[Sun Chariot]

You have posted an advert to the guys business:

OK, I see where you've misconstrued the LI post.
It's not describing a business. It is listing the jobs that the LI author's seeking.

That last sentence - coupled with the "Open To Work" green banner on LI author's face, is because the author is out of work and is using LI network to find another job. It has been common LI practice for several years.

The post cites ONS and BBC source data - with links included - and quotes known UK orgs affected this month. I believe you'll find those same orgs already mentioned- with source links - in earlier posts within this thread.

 

[ClivePage]

I’m still astonished WH Smith has survived for as long as it has.

I am too. I use our local branch occasionally to buy a newspaper - those in front of me in the queue are almost always just buying scratch-cards or lottery tickets, i.e. they are paying the voluntary tax on the stupid. The number of customers in total doesn't seem enough to keep the branch going, though it does have a Post Office section which may help.

But I see in today's paper that their profits went up last year and they are now planning an expansion in the United States. So they must be doing something right, though it baffles me.

 

[ainsworth74]

Typhoo, which was founded in 1903 by Birmingham grocer John Sumner, was once one of the UK’s best-selling tea brands. Sales have struggled in recent years as many Britons have switched to coffee, energy drinks and novelty drinks such as bubble tea.

Revenues at Typhoo fell from £34m in 2022 to £25m last year, while losses ballooned to £38m from £9.7m a year earlier, according to publicly available accounts. Typhoo said it was forced to swallow £24m of exceptional costs in the 2023 financial year.

Another company owned by private equity going bust? Say it isn't so!

Admittedly Typhoo had apparently been struggling for a while but as soon as a company gets bought out by private equity as Typhoo was in 2021 it always feels like just a matter of time before it ends up being dissolved.

 

[TAS]

I am too. I use our local branch occasionally to buy a newspaper - those in front of me in the queue are almost always just buying scratch-cards or lottery tickets, i.e. they are paying the voluntary tax on the stupid. The number of customers in total doesn't seem enough to keep the branch going, though it does have a Post Office section which may help.

But I see in today's paper that their profits went up last year and they are now planning an expansion in the United States. So they must be doing something right, though it baffles me.

I think the key - and very understandable - mistake that many people make when talking about WH Smith is that they think about the UK high street stores, which are actually now an increasingly small part of a larger predominantly travel-focused multinational retailer. This is fair enough - from the figures I've seen, travel revenue only started outstripping high street revenue in 2017.

Using the figures in the 2024 preliminary results (the most recent available), if my quick calculations are correct WH Smith plc's UK high street operations were responsible for 16% of trading profits, 24% of revenue, and 28% of stores. Those high street financial figures include funkypigeon.com, so in reality the actual stores would be responsible for an even smaller share of revenue and profits.

I don't think WH Smith plc is going anywhere, but given the growth of the travel division and continued shrinking of the high street one, perhaps there may come a point where they decide to exit the latter? But there would obviously be costs attached to that unless they could find a willing buyer, and the stores do seem to still be profitable for now...

 

[Gloster]

I think the key - and very understandable - mistake that many people make when talking about WH Smith is that they think about the UK high street stores, which are actually now an increasingly small part of a larger predominantly travel-focused multinational retailer. This is fair enough - from the figures I've seen, travel revenue only started outstripping high street revenue in 2017.

Using the figures in the 2024 preliminary results (the most recent available), if my quick calculations are correct WH Smith plc's UK high street operations were responsible for 16% of trading profits, 24% of revenue, and 28% of stores. Those high street financial figures include funkypigeon.com, so in reality the actual stores would be responsible for an even smaller share of revenue and profits.

I don't think WH Smith plc is going anywhere, but given the growth of the travel division and continued shrinking of the high street one, perhaps there may come a point where they decide to exit the latter? But there would obviously be costs attached to that unless they could find a willing buyer, and the stores do seem to still be profitable for now...

And here you have one of the ‘hidden time bombs’ (to use tabloid speak): the increasing difficulty in letting town centre shops if the businesses cease to use them. Those companies that bought their property are going to be left with a millstone around their necks, while those with long contracts are going to have to sit them out. There are only so many charity shops that can at least cover costs, so I foresee a time when businesses choosing to close shops that are still profitable in order not to be left with the property when the shop becomes a loss maker. I wonder if we are going to see some of the commercial letting companies going to the wall before long.

 

[simonw]

OK, I see where you've misconstrued the LI post.
It's not describing a business. It is listing the jobs that the LI author's seeking.

That last sentence - coupled with the "Open To Work" green banner on LI author's face, is because the author is out of work and is using LI network to find another job. It has been common LI practice for several years.

The post cites ONS and BBC source data - with links included - and quotes known UK orgs affected this month. I believe you'll find those same orgs already mentioned- with source links - in earlier posts within this thread.

You need to read it again as it's not how you describe.

 

[Sun Chariot]

You need to read it again as it's not how you describe.

I am guessing you're at a different life-stage, or in a different career field, to the LI poster's. Their words are job skills - it's what they do.
I also know - that they, their wife, their son and all their wife's team colleagues all had a compulsory redundancy from their respective private sector employers this month. Look at their final sentence: " I ask that on behalf of others as well as I."

You need to read it again as it is how I describe. It is exactly how I describe.
Merry Christmas

 

[richw]

You have posted an advert to the guys business:

"If your organisation or your client has a need for the "value adds" offered through Business Relationship Management, Demand Management and Value Chain Analysis, then please do get in touch. "

This isn't what this thread is for.

The only thing it’s advertising is himself looking for work.. what happened to applying for jobs, do businesses actually go searching for prospective staff on LinkedIn?

 

[Sun Chariot]

what happened to applying for jobs, do businesses actually go searching for prospective staff on LinkedIn?

At the risk of me straying OT (I am sorry mods) - yes, in recent times, more than ever before, it's as much "who you know" as "what you know". Recruiters make no secret of it and actively encourage job seekers to do this:
Tapping up people - head hunters, former bosses, potemtial new employers, and so on - is imperative in the private sector - one needs to get "known" and into minds of potential hirers, long before a job vacancy ad appears. That approach worked for me first-hand in the past.
The UK and US's jobs markets are brutally competitive, more than they've been for decades.

 

[Harpo]

WH Smiths survival surprises me too. Our local branch, in an otherwise vibrant high street, has the most miserable shop workers I’ve ever come across. They even found a teenager to match them. Self service seems to have helped them become fully detached from customers.

I’ve also noticed that magazines are being moved towards the rear of many branches, forcing two walks through a sea of over-priced tat that belongs on a market stall.

However, if there were no WHS, I suspect there’d be a huge number of monthly titles without physical sales outlets.

 

[TAS]

And here you have one of the ‘hidden time bombs’ (to use tabloid speak): the increasing difficulty in letting town centre shops if the businesses cease to use them. Those companies that bought their property are going to be left with a millstone around their necks, while those with long contracts are going to have to sit them out. There are only so many charity shops that can at least cover costs, so I foresee a time when businesses choosing to close shops that are still profitable in order not to be left with the property when the shop becomes a loss maker. I wonder if we are going to see some of the commercial letting companies going to the wall before long.

An interesting point, and it looks like WH Smith have been managing this well. When I looked at the 2024 figures yesterday I spotted that they were quoting an average lease length for their high street stores of under two years. I've just had a quick look at their 2005 annual report (the oldest on their website), and the figure then was nine years.

Doesn't look like there are too many long leases hidden by that average either - there are 500 high street stores and circa 470 leases are due for renewal in the next three years (including over 100 where they are "holding over" and negotiating with the landlord, i.e. the lease has already expired). And where they have renewed a lease, they've achieved rent savings of 35%.

 

[stadler]

WH Smiths survival surprises me too. Our local branch, in an otherwise vibrant high street, has the most miserable shop workers I’ve ever come across. They even found a teenager to match them. Self service seems to have helped them become fully detached from customers.

I’ve also noticed that magazines are being moved towards the rear of many branches, forcing two walks through a sea of over-priced tat that belongs on a market stall.

However, if there were no WHS, I suspect there’d be a huge number of monthly titles without physical sales outlets.

I think the Post Office is what keeps W H Smith going. Most of their high street branches have a Post Office inside. If it was not for the Post Office than i reckon they would have shut down all of their high street branches by now and would just remain at airports and railway stations and service stations.

 

[43096]

Go-op…

 

[Peter Sarf]

An interesting point, and it looks like WH Smith have been managing this well. When I looked at the 2024 figures yesterday I spotted that they were quoting an average lease length for their high street stores of under two years. I've just had a quick look at their 2005 annual report (the oldest on their website), and the figure then was nine years.

Doesn't look like there are too many long leases hidden by that average either - there are 500 high street stores and circa 470 leases are due for renewal in the next three years (including over 100 where they are "holding over" and negotiating with the landlord, i.e. the lease has already expired). And where they have renewed a lease, they've achieved rent savings of 35%.

This does strike me as how short term things are becoming. A firm does not want to tie up capital in long term leases or ownership. It is the same for the punter - you get a golden hello for a service (eg mobile contract) but must remember to shop around regularly to get a good deal (our internet has suddenly almost doubled in cost). So we are turning into a nation (world) of people continuously jumping ship and so companies that provide an ongoing reasonably priced service are maybe suffering from a weakness of not advertising and attracting with unsustainable rates. I wonder ?.

== Doublepost prevention - post automatically merged: 16 Nov 2024 ==

I think the Post Office is what keeps W H Smith going. Most of their high street branches have a Post Office inside. If it was not for the Post Office than i reckon they would have shut down all of their high street branches by now and would just remain at airports and railway stations and service stations.

Hate to say it but the Croydon W H Smith is a minor short cut for me. But I now find myself avoiding it as it is somehow worse than pointless !.

Not helped by the general decline of Croydons Whitgift shopping centre which must be in danger of financial collapse.

== Doublepost prevention - post automatically merged: 16 Nov 2024 ==

Go-op…

Ah ha, accidentally found what you mean.

New Go-op train service between ....

You may well be correct !.

 

[brad465]

Pizza Hut is trying to raise finances in light of budget tax increases that will hit them:

UK Pizza Hut to raise funds after Budget tax hikes

The money could come from a sale of part of the business, or new investment from existing shareholders.

www.bbc.co.uk

The operator of Pizza's Hut restaurants in the UK is looking to raise more than £10m to help it cope with increased costs after tax rises on business were announced in last month's Budget.
The money could come from a sale of part of the business, or new investment from existing shareholders.
It comes amid growing backlash from business owners who warn, external rises in employers' national insurance contributions and the National Living Wage will push up costs for business which employ lots of low-wage workers.
Heart With Smart (HWS) - which operates all 140 UK dine-in Pizza Hut restaurants - will use the money on new technology including touch-screen ordering kiosks and contactless table ordering.
The new features would allow restaurants to save money by operating with fewer staff and are already being trialled successfully in some Pizza Hut outlets, a company insider told the BBC.
They said it would result in reduced staff levels, but the store does not expect a major redundancy programme.
From April 2024 the rate of employers’ national insurance contributions, which are paid by businesses on top of workers’ salaries, will rise from 13.8% to 15%, and the level where contributions start will fall to £5000.
Combined with a 6.7% increase in the National Living Wage from April, and an even bigger rise for 18 to 20-year-olds, HWS expects to see its labour costs rise £4m, or about 14%, next year.
Chancellor Rachel Reeves has previously said businesses "will have to absorb" some of these costs through their profits.

As someone who is a recurring customer, while I've not had too many issues with them, it's been a very long time since I walked into one of their restaurants and found it at more than half capacity, while their restaurant count has slowly been declining in the last decade (including a few I visited more than once but now no longer exist). Delivery/collection service also seems rather quiet from multiple venues I've used before. Therefore, I imagine they've got wider financial issues that pre-date any tax implications they've got to consider.

 

[Peter Sarf]

Pizza Hut is trying to raise finances in light of budget tax increases that will hit them:

UK Pizza Hut to raise funds after Budget tax hikes

The money could come from a sale of part of the business, or new investment from existing shareholders.

www.bbc.co.uk

As someone who is a recurring customer, while I've not had too many issues with them, it's been a very long time since I walked into one of their restaurants and found it at more than half capacity, while their restaurant count has slowly been declining in the last decade (including a few I visited more than once but now no longer exist). Delivery/collection service also seems rather quiet from multiple venues I've used before. Therefore, I imagine they've got wider financial issues that pre-date any tax implications they've got to consider.

I do think this rise in staff costs is going to finish off several marginal businesses in all sorts of trades.

 

[brad465]

I do think this rise in staff costs is going to finish off several marginal businesses in all sorts of trades.

For some certainly, but there will be others who use it as an excuse to cover up their shortcomings/failure to adapt. Covid was another example of such an excuse, to the point there was a whole thread on this site from memory dedicated to the matter.

 

[Sun Chariot]

Covid was another example of such an excuse, to the point there was a whole thread on this site from memory dedicated to the matter.

Coincidentally, I took a set of photos during that time, to record the street scene..
Photos show some local closures of high street brands.

 

[Peter Sarf]

Morrisons.

Having just discovered that the Sutton supermarket has not re-opened following its closure for roof repairs.

I then looked at the Morrisons website for the nearest to Sutton which is at Mitcham but when I click on that I discover it closed in 2023 !.

Cannot even keep a web site up to date.

We can see in the Croydon supermarket that things are getting flakey. A lot of rubbish around the isles and stock (some chilled or frozen) sitting for hours in the isles awaiting insertion on the chiller shelves or freezers. Even had a pallet of eggs that had spread all over the floor as customers undid the cling film type wrapping and pulled boxes from the bottom. A lot of mess and work to clear up. Rushed / frazzled staff. Apparently the hours were cut about 9 months ago. Staff not finding out of date things and reducing the near dated items - so some of us customers do the finding (which we have been reminded is strictly not allowed and is currently enforced (badly)).

 

[Henffordd]

Morrisons.

Having just discovered that the Sutton supermarket has not re-opened following its closure for roof repairs.

I then looked at the Morrisons website for the nearest to Sutton which is at Mitcham but when I click on that I discover it closed in 2023 !.

Cannot even keep a web site up to date.

We can see in the Croydon supermarket that things are getting flakey. A lot of rubbish around the isles and stock (some chilled or frozen) sitting for hours in the isles awaiting insertion on the chiller shelves or freezers. Even had a pallet of eggs that had spread all over the floor as customers undid the cling film type wrapping and pulled boxes from the bottom. A lot of mess and work to clear up. Rushed / frazzled staff. Apparently the hours were cut about 9 months ago. Staff not finding out of date things and reducing the near dated items - so some of us customers do the finding (which we have been reminded is strictly not allowed and is currently enforced (badly)).

... and their store at Ross Vegas (Ross on Wye for those out of the county) has just received a Food Hygiene rating of one. Another symptom?

 

[brad465]

Morrisons.
...

They got taken over by some private equity firm which has, as often happens in this instance, been stripped down and have already reported big losses this year:

Morrisons posts £1bn loss as debt payments soar

Morrisons, which was bought by Clayton Dubilier & Rice for £7bn in October 2021 after a fierce bidding war, has found life as a private company hard.

www.thisismoney.co.uk

Morrisons has clocked up a fresh £1billion loss as it continues to struggle under private equity ownership.

The supermarket chain, which was bought by Clayton Dubilier & Rice for £7billion in October 2021 after an intense bidding war, has found life as a private company hard.

Latest results for the 52 weeks to the end of October 2023 reveal the company posted a £1.1billion loss on revenue of £18billion, according to filings at Companies House for the chain’s parent company Market Topco.

That compares with a loss of £1.5billion in the 65 weeks to the end of October 2022. Much of the loss was a result of having to service the group’s massive debt pile.

The company reported finance costs of £735million, with £400million spent servicing its annual interest payments on borrowings of £5.4billion.

If/when they collapse I hope there is a serious discussion about the role this business venture plays and whether it should be outlawed/tightly regulated.

 

[route101]

Morrisons.

Having just discovered that the Sutton supermarket has not re-opened following its closure for roof repairs.

I then looked at the Morrisons website for the nearest to Sutton which is at Mitcham but when I click on that I discover it closed in 2023 !.

Cannot even keep a web site up to date.

We can see in the Croydon supermarket that things are getting flakey. A lot of rubbish around the isles and stock (some chilled or frozen) sitting for hours in the isles awaiting insertion on the chiller shelves or freezers. Even had a pallet of eggs that had spread all over the floor as customers undid the cling film type wrapping and pulled boxes from the bottom. A lot of mess and work to clear up. Rushed / frazzled staff. Apparently the hours were cut about 9 months ago. Staff not finding out of date things and reducing the near dated items - so some of us customers do the finding (which we have been reminded is strictly not allowed and is currently enforced (badly)).

Morrisons always seems outdated to me, its never caught up. One local to me had a broken freezer for months.

 

[Mojo]

A lot of rubbish around the isles and stock (some chilled or frozen) sitting for hours in the isles awaiting insertion on the chiller shelves or freezers.

I can't remember when I last went into a Morrisons. It's a shame to hear that the shops have started looking like Muck as they actually used to be a pleasant place to shop. I seem to remember from news reports that they had a big management shakeup recently and haven't heard anything much about them recently so thought that everything was going all Wight for them, but seems this was back in January so doesn't seem as if it's had much effect.