Companies That You Expect to Disappear Soon

[brad465]

It's what Modella Capital do, just as they did with Claire's Accessories and Hobbycraft and Ted Baker. I see Modella will be using the hedge fund Aurelius for funding again.

When Body Shop went bust Aurelius got all their money back because it was secured. Redundancy payments had to come from the National Insurance Fund. HMRC had to go whistle. And then, like a phoenix, the new company re-emerges, debt-free and under the same ownership.

Unless and until the Directors of these companies are made personally liable for redundancy payments, nothing will change. Or at the very least, taxpayer creditors (so HMRC and staff redundancy payments) should be top of the pile for repayment before any other creditors get a single penny.

Yes I personally think private equity should be illegal.

 

[35B]

Yes I personally think private equity should be illegal.

Private equity is entirely neutral. The tactics of some company owners, of various kinds, however, should be illegal.

 

[DoubleLemon]

Royal Mail is adapting post boxes and there are now lockers all over the place - some which can print labels. Not only might a locker be more convenient (they're open 24 hours for one), but some of these companies can be cheaper too.

my understanding is it Royal Mail and the post office are falling out and the post office are no longer defaulting to royal mail but every for everything other than picking up letters

 

[TheSmiths82]

I have been to a couple of TJ Jones stores and they look tired. There seems to be zero innovation when it comes to stock and part from buying a magazine there is no reason for me to visit. I can get everything else much cheaper else where.

 

[joncombe]

my understanding is it Royal Mail and the post office are falling out and the post office are no longer defaulting to royal mail but every for everything other than picking up letters

I don't know but I feel like they may be working some kind of scam. I ordered something to be delivered by Evri. Bur I got one of those "the sender didn't pay enough postage" cards through the door. I had to go to the post depot, which opens now for just one hour per day. I had to pay before they'd show me the parcel. It had a fully paid Evri postage label. When I complained they claimed that it was given to the Royal mail to deliver and they hadn't been paid for it, Evri had, so that's why I had to pay.

 

[Andyh82]

I have been to a couple of TJ Jones stores and they look tired. There seems to be zero innovation when it comes to stock and part from buying a magazine there is no reason for me to visit. I can get everything else much cheaper else where.

The Leeds store has had a full refurbishment, does anyone know of any others? Maybe it was a one off trial

There are a number of stores that are fairly decent having been done under WHSmith ownership, with the wooden floor, such as York

You might be able to tell which ones are likely to close by what floor covering they have!

 

[BuhSnarf]

It's likely they'll keep ones that are profitable in high footfall locations with the lowest rent. Unfortunately some landlords have pushed rent up and up to the point that it's just not feasible to turn a profit unless you are selling high margin products of which TG Jones no longer have as a core (magazines aren't high margin, stationery is but they just don't sell as much, books can be if sold at RRP - but often to compete with Amazon/supermarkets they have to price at very minimal margin)

 

[35B]

my understanding is it Royal Mail and the post office are falling out and the post office are no longer defaulting to royal mail but every for everything other than picking up letters

Not falling out, but the original trading agreement requiring each to give priority to the other has now expired.

I don't know but I feel like they may be working some kind of scam. I ordered something to be delivered by Evri. Bur I got one of those "the sender didn't pay enough postage" cards through the door. I had to go to the post depot, which opens now for just one hour per day. I had to pay before they'd show me the parcel. It had a fully paid Evri postage label. When I complained they claimed that it was given to the Royal mail to deliver and they hadn't been paid for it, Evri had, so that's why I had to pay.

That's awful of Royal Mail, but consistent with their approach - recipient pays if the sender hasn't done so properly. From what they've said in the past, though, I'm surprised that they let the postage into the system underpaid - that's part of what their tracking's designed to deal with, as they certainly used to be significantly underpaid by commercial customers.

I'd suggest complaining to both Royal Mail (should have pursued Evri) and Evri (why underpaying Royal Mail) to get the postage back, plus something for the hassle in going to the delivery office.

 

[Peter Sarf]

The Leeds store has had a full refurbishment, does anyone know of any others? Maybe it was a one off trial

There are a number of stores that are fairly decent having been done under WHSmith ownership, with the wooden floor, such as York

You might be able to tell which ones are likely to close by what floor covering they have!

Oh, that does not bode well for the Croydon branch of TG Jones.
Tatty floor with many pieces of tape over failed joints.
Clearance outlet signs guiding you upstairs past the blockage formed of shelves and displays etc (yes upstalrs now closed).
Store is doomed because the Whitgift Shopping centre which the shop is in is suffering planning blight - the council have allowed developers to start developing it as a Westfield for more than a decade and several failures now.

Worse still the half demolished St Georges Walk shopping centre staggers on with a few part time stores - that started disappearing under the same curse of developers back in the 1990s. You would think a council would not give permission to re-develop one shopping centre until the one already started is finished /rant.

 

[Merle Haggard]

I don't know but I feel like they may be working some kind of scam. I ordered something to be delivered by Evri. Bur I got one of those "the sender didn't pay enough postage" cards through the door. I had to go to the post depot, which opens now for just one hour per day. I had to pay before they'd show me the parcel. It had a fully paid Evri postage label. When I complained they claimed that it was given to the Royal mail to deliver and they hadn't been paid for it, Evri had, so that's why I had to pay.

Some time ago I had a similarly bad experience with a magazine posted all the way with Royal Mail. Had a note through the door saying a package was insufficiently stamped. Went to the RM depot and had to pay the excess before I could see it. It appeared to be the same as previous ones that had been delivered without challenge.
I asked the staff member what was wrong with the amount paid and they said 'search me'; and slammed closed the hatch.
On the other hand it is said that the best way to make sure a letter gets delivered by Royal Mail is to under-stamp it because of their determination to extract excess charges.

 

[david1212]

my understanding is it Royal Mail and the post office are falling out and the post office are no longer defaulting to royal mail but every for everything other than picking up letters

Not falling out, but the original trading agreement requiring each to give priority to the other has now expired.
......

If I order on eBay for 'Click & Collect' if sent by Royal Mail the package goes to the newsagent, if sent by Evri it goes to the Post Office in the same block .....

The Post Office is the drop-off for Evri and DPD, also Amazon returns although I've no idea what carrier they go with or if collected by one of the Amazon delivery drivers.

For Amazon orders for collection ( not marketplace sellers ) I can choose the Post Office or the newsagent.

Outside the Co-op 100m away is a Parcel Locker shared by Royal Mail, DPD, Evri & UPS.

 

[Peter Sarf]

Some time ago I had a similarly bad experience with a magazine posted all the way with Royal Mail. Had a note through the door saying a package was insufficiently stamped. Went to the RM depot and had to pay the excess before I could see it. It appeared to be the same as previous ones that had been delivered without challenge.
I asked the staff member what was wrong with the amount paid and they said 'search me'; and slammed closed the hatch.
On the other hand it is said that the best way to make sure a letter gets delivered by Royal Mail is to under-stamp it because of their determination to extract excess charges.

I must say. I think the trust we used to have in the Royal Mail is in danger of being lost, and that will be very hard to recover.

 

[Russel]

Costa in Lewes has closed, and several London branches have too. They seem to be in a middle ground - people who value quality are going to independents, Gail's etc with better cakes and baked goods and similarly priced coffee. The value conscious go to Greggs, who are opening bigger stores with seating.

What doesn't help Costa is their range has been stagnant for about 10 years, they have only just jumped on the Matcha trend and even then their competitors all do it better...

I do wonder how far off they are from pricing themselves out of the market too, we used to visit Costa a lot but given it's now around £15 for two coffees and a hot chocolate we don't bother, we go to Greggs and get the same thing for about £8...

 

[TheSmiths82]

The other issue with Costa is they all had similar décor to Premier Inn and other Whitbread outlets. I am not a coffee fan but sometimes on my travels I do want to get some quick breakfast from some where other than Greggs and I would never have considered Costa for that. However I do often frequent Black Sheep Coffee shops for my breakfast.

 

[DelW]

I do wonder how far off they are from pricing themselves out of the market too, we used to visit Costa a lot but given it's now around £15 for two coffees and a hot chocolate we don't bother, we go to Greggs and get the same thing for about £8...

In Wetherspoons you'd get the three drinks for £5 or less in most of their pubs (not central London or airports though). You get a china mug and free refills of the coffees (but free refills of hot chocolate fell foul of government sugary drinks restrictions recently).

 

[Harpo]

The other issue with Costa is……

…..a second cup is out of the question unless you fancy the long queue and long wait for your drink, a second time around. So much easier abroad where everything’s ordered from your seat.

 

[Ken X]

I noticed today that the TG Jones in Horsham has sprouted an independent cash machine in its front wall. Can't remember the brand but I bet it charges.

Strange idea as there are many free machines within a few yards and, being in a shopping centre, is inaccessible out of normal retail hours.

 

[Russel]

In Wetherspoons you'd get the three drinks for £5 or less in most of their pubs (not central London or airports though). You get a china mug and free refills of the coffees (but free refills of hot chocolate fell foul of government sugary drinks restrictions recently).

Very true, but I've never liked the coffee from Spoons.

 

[Backroom_boy]

I'm a bit shocked that workers basic statutory redundancy costs don't have priority when a firm goes into administration.

Private equity is entirely neutral. The tactics of some company owners, of various kinds, however, should be illegal.

 

[Nym]

I'm a bit shocked that workers basic statutory redundancy costs don't have priority when a firm goes into administration.

Why be shocked that the law looks after the interest of banks and companies before the workers?

 

[Brightonboy]

The other issue with Costa is they all had similar décor to Premier Inn and other Whitbread outlets. I am not a coffee fan but sometimes on my travels I do want to get some quick breakfast from some where other than Greggs and I would never have considered Costa for that. However I do often frequent Black Sheep Coffee shops for my breakfast.

Whilst I agree that the decor was starting to bore me, and the shops often feel darker than they used to, I still prefer their coffee to that of Starbucks and find the quality of food & drink consistent across all their outlets. I do get irritated with both Costa & Starbucks if I am eating/drinking 'in' and they serve me using disposable cups etc - that seems to be becoming more common. If I am 'in' then I am generally there for a break from whatever I am doing and want proper cutlery and crockery. The prices do seem to be going up as well, but I still prefer Costa to Greggs for hot drinks.

 

[Andyh82]

Whereas I think places like Costa are pricing themselves out of the market (not just coffees, a bun or a toastie can be £4 each now), I hardly think they will be a ‘company disappearing soon’

I’m not sure Greggs is exactly the same market, Costa coffees are made by a barista, in Greggs they just put a paper cup under a machine and press a button. Both are right for different occasions.

 

[Sonic1234]

Whereas I think places like Costa are pricing themselves out of the market (not just coffees, a bun or a toastie can be £4 each now), I hardly think they will be a ‘company disappearing soon’

Unlikely to be disappearing but could be downsizing. They don't stand up well to competition, where they succeed is in smaller towns where there are fewer options. Lucky to get a toastie for £4 though, unless it's part of a deal (which Costa do, but they allow their franchise stores to opt out of - so much for consistency).

I've heard the really profitable part of Costa is the express machine business. Much more straightforward and lower overheads than running cafes.

 

[jon0844]

I must say. I think the trust we used to have in the Royal Mail is in danger of being lost, and that will be very hard to recover.

It's sad to see how things are playing out.

The Royal Mail had the opportunity to modernise and take on the other delivery firms, with the huge benefit of lots of postal workers that really know their routes and have often remained on specific routes for their whole careers.

They could offer services to the likes of Amazon and by all means act as a hub for other parcels through their counters and lockers.

But it seems more like they're happy to actually use the services of the likes of Evri for the last mile deliveries (which seems self-defeating) and the co-branded vans don't sit right with me given the poor treatment of staff who work for Evri, and the known hatred of the company because of how many parcels don't get delivered properly, or are damaged, or go missing entirely - with AI bots doing nothing but try and stop you being able to complain.

Why would anyone want to try and emulate that? Well, obviously it's money. And the race to the bottom really could spell the end of the Royal Mail, although I suspect that in the position they are, they'll end up with the Government having to bail them out in some way.

 

[Tetchytyke]

Yes I personally think private equity should be illegal.

Private equity is entirely neutral. The tactics of some company owners, of various kinds, however, should be illegal.

Private equity isn’t the issue, it is neutral. It’s just a way of raising money.

Pre-packaged administrations should be illegal. It happens too often, someone buys a company, loads it with debt then, when it fails, puts the company into administration. Secured creditors, who are associates of the owner, get repaid in full. Everyone else gets to go swivel. The taxpayer pays the redundancy. Small businesses lose huge amounts of money.

They then buy it back from the administrator without any debt. Rinse and repeat.

Personally I’d change the Limited Company by Guarantee rules. Make the shareholders guarantee more. It would stop a lot of this nonsense.

 

[jon0844]

I'm a bit shocked that workers basic statutory redundancy costs don't have priority when a firm goes into administration.

How about the law is changed so staff get paid first, and how about going one step further - when private equity companies come in and make bold promises they know they won't have to keep, get them to put money in a secured fund that is forfeit if they deviate from their promises?

Make them stand to lose money if they want to adopt all the standard playbook tactics to destroy a company and then rinse and repeat for personal gain?

 

[BuhSnarf]

Unlikely to be disappearing but could be downsizing. They don't stand up well to competition, where they succeed is in smaller towns where there are fewer options. Lucky to get a toastie for £4 though, unless it's part of a deal (which Costa do, but they allow their franchise stores to opt out of - so much for consistency).

I've heard the really profitable part of Costa is the express machine business. Much more straightforward and lower overheads than running cafes.

I don't know, even in larger towns and cities when there is much better options I still see Costa seating areas full and usually a queue.

 

[Broucek]

What doesn't help Costa is their range has been stagnant for about 10 years, they have only just jumped on the Matcha trend and even then their competitors all do it better...

Matcha is a crime against humanity....

 

[jon0844]

Matcha is a crime against humanity....

At least it gives some people something to talk about other than protein now being added to almost everything on sale!

(Apparently 'profee' is a thing so maybe Costa will be offering that soon, charging about £8 a cup or something).

 

[Harpo]

I’m not sure Greggs is exactly the same market, Costa coffees are made by a barista, in Greggs they just put a paper cup under a machine and press a button.

I like the barista process but bean-to-cup machines can make equally good coffee. Costa is also prone to using paper cups when it suits them to.