Companies That You Expect to Disappear Soon

[sprunt]

It doesn't suggest DoorDash have seen any writing on the wall...

 

[jon0844]

It doesn't suggest DoorDash have seen any writing on the wall...

It's the 'employees' that usually lose out when it comes to middlemen companies like this. Sure, they may invest a lot of money in marketing, but they're getting income from both the seller of the food/product and the delivery side. I'm sure if their margins are hit, they can just squeeze everyone a bit more.

 

[Snow1964]

Poundland shops parent (Polish company PEPCO), have sold the business for nominal £1 to American Investment firm Gordon Brothers.

These sort of offloading /restructuring of loss making businesses usually lead to parts being closed, therefore quite likely some of the shops will close.

 

[brad465]

If I had my way I'd make Private Equity operations like the ones that have taken over ASDA, Morrisons, Water Companies, now Poundland, etc., illegal. They make leeches look like blood donors.

 

[Iskra]

If I had my way I'd make Private Equity operations like the ones that have taken over ASDA, Morrisons, Water Companies, now Poundland, etc., illegal. They make leeches look like blood donors.

Aren’t a lot of them part of pension funds?

 

[PeterC]

I’m wondering how much longer companies such as Just Eat can keep going, since they seem to have become very expensive and many outlets are producing their own websites now to cut them out and save on commission, and offer a minor discount on their own website.

Most outlets seem to outsource deliveries to these companies even when they run their own website.

 

[Peter Mugridge]

Poundland shops parent (Polish company PEPCO), have sold the business for nominal £1 to American Investment firm Gordon Brothers.

These sort of offloading /restructuring of loss making businesses usually lead to parts being closed, therefore quite likely some of the shops will close.

They have stated that 100 of the remaining 825 shops will close.

 

[Iskra]

Most outlets seem to outsource deliveries to these companies even when they run their own website.

That’s not my experience around my parts. Perhaps the riders work for multiple vendors hence your perspective?

 

[Kite159]

They have stated that 100 of the remaining 825 shops will close.

Probably the ones which are not making enough money due to local competition or the cost of the store. Not the best news for the staff if they get make redundant if they can't get redeployed into other stores.

 

[Brubulus]

If I had my way I'd make Private Equity operations like the ones that have taken over ASDA, Morrisons, Water Companies, now Poundland, etc., illegal. They make leeches look like blood donors.

They are effectively the same as any other owner of a business. Generally however they are able to better enable expansion and it's not a bad thing per se as they can aggregate funds from pension funds, other investors and enable effective management. The supermarket industry is very competitive and I'm not concerned about it. Water on the other hand is a different story.

I’m wondering how much longer companies such as Just Eat can keep going, since they seem to have become very expensive and many outlets are producing their own websites now to cut them out and save on commission, and offer a minor discount on their own website.

Just eat will survive, simply because it's much harder for smaller eateries to justify running an entire delivery operation. Secondly with automation of local deliveries (Starship robots and other companies) the actual cost of providing delivery will fall to near zero. The problem with the current model is the sheer labour intensity of individually delivering things makes it hard to justify, and difficult to operate profitably while adhering to labour law.

 

[Iskra]

Just eat will survive, simply because it's much harder for smaller eateries to justify running an entire delivery operation. Secondly with automation of local deliveries (Starship robots and other companies) the actual cost of providing delivery will fall to near zero. The problem with the current model is the sheer labour intensity of individually delivering things makes it hard to justify, and difficult to operate profitably while adhering to labour law.

Loads of Chinese, Indian and pizza takeaways with only 1 outlet were running successful delivery services well before Just Eat was even dreamt off.

 

[jon0844]

As we see more and more companies realise they're in trouble as Amazon changes the terms for them selling on the platform, with large penalties for a multitude of things (far too much to detail here), I am sure many businesses are wishing they hadn't given so much power to a third party that will eventually stiff them. Amazon doesn't care as there are plenty more fish in the sea.

Many businesses can't just go back to doing mail-order themselves, and it will be the same for restaurants. I do wonder if we'll see some places dare to go back to their old delivery methods. It's not going to be easy though.

Food delivery is a bit different though because it usually just ends up with the customer paying a small fortune for their food delivery (like 2 times the standard restaurant price, sometimes more) whereas Amazon is keeping prices down and just making the seller take the hit.

 

[The Ham]

As we see more and more companies realise they're in trouble as Amazon changes the terms for them selling on the platform, with large penalties for a multitude of things (far too much to detail here), I am sure many businesses are wishing they hadn't given so much power to a third party that will eventually stiff them. Amazon doesn't care as there are plenty more fish in the sea.

Many businesses can't just go back to doing mail-order themselves, and it will be the same for restaurants. I do wonder if we'll see some places dare to go back to their old delivery methods. It's not going to be easy though.

Food delivery is a bit different though because it usually just ends up with the customer paying a small fortune for their food delivery (like 2 times the standard restaurant price, sometimes more) whereas Amazon is keeping prices down and just making the seller take the hit.

The thing is sellers will only take the hit for so long. Also, the more that things like this come to light they more people are willing to look beyond Amazon for buying things.

 

[styles]

Also, the more that things like this come to light they more people are willing to look beyond Amazon for buying things.

I'm not so sure about this. Some people make conscientious decisions about where they shop with morals in mind, but it's a vanishingly small proportion of customers who make it their core reason.

Amazon has had strings of workers rights controversies for years, published widely in mainstream media. It hasn't stopped the overwhelming majority of people from shopping there. Their net sales increased 11% last year.

Temu is ridiculously popular, even though customers know deep down that things are cheap there because the factories there get away with modern slavery and forced labour.

Convenience wins. Cheap tat on Temu, next day delivery from as late as 11pm on Amazon, all your food and toiletries in one place at supermarkets. It's all price and convenience.

 

[TheTTTEGeek]

Poundland must be in trouble as they are reportedly about to be sold for… one pound.

Poundland store closures likely as chain set to be sold

Gordon Brothers has emerged as the frontrunner of a clutch of turnaround investors looking to take control of the discount chain for a nominal fee

www.thetimes.com

Isn't the shop that Stuart Ashen (known as Ashens on YouTube) would review holiday tat from years ago

 

[styles]

Isn't the shop that Stuart Ashen (known as Ashens on YouTube) would review holiday tat from years ago

I wonder if, to some extent, the rise of food bank usage may have detracted from Poundland's market.

Per g/ml/etc, Poundland often wasn't cheaper than the supermarkets, even when everything was actually just £1. It was more that they sold smaller packs of e.g. washing powder which people were able to afford on smaller incomes, whereas the only other shops selling small packs were corner shops who charged a fortune.

For example, Poundland has Fairy at 50p/100g (https://www.poundland.co.uk/fairy-non-bio-washing-powder-10-washes-600g) but you only need to spend £3.

Asda has Fairy at 36p/100g, (https://groceries.asda.com/product/...shing-powder-3-575-kg-65-washes/1000383270133), but the box costs £12.48.

Putting aside the 'poor tax' issue, I've noticed that our local couple of food banks have been better stocked with non-food lately, and the numbers for the UK show the number of food bank referrals has rocketed. In my old village, I also helped with a community pantry, where we picked up damaged boxes, short-dated foods etc from supermarkets and local businesses. We had a constant supply of food, toiletries, cleaning products, etc. When you can pay £4 and come home with a full bag of food shopping, toiletries, and bread; I imagine that would be one less person popping to Poundland to spend £3 on the washing powder alone.

At the other end, you've got people who can afford to shop elsewhere, and a growing trend of people seeking better quality food and ingredients. The health-conscious generation. There's not much in Poundland for them - it's predominantly ultra-processed food which people are trying to reduce.

Maybe there's a place for them still, but I don't know what exactly it would be.

 

[DannyMich2018]

Regarding Poundland I went into the Hinckley branch yesterday. The cleaning cloths in a roll which are £1 not been stocked for many weeks now, Daddies brown sauce same and the cheapest available brown sauce is £1, Asda etc own brand cheaper. Tissue cubes also cheaper in Aldi and even Morrisons. Rarely go in now and won't miss it if it closes down!

 

[Russel]

My local Poundland does have a Wilko in it's final few months feel to it...

 

[johntea]

Isn't the shop that Stuart Ashen (known as Ashens on YouTube) would review holiday tat from years ago

He still does!

I did read as part of the restructure they're going to axe fresh foods apart from perhaps milk and the like which makes sense as they're pretty much wasted stock as soon as the expiry date comes round unlike the seasonal tat which they can just send back to a warehouse and dust off for the year after

 

[Russel]

He still does!

I did read as part of the restructure they're going to axe fresh foods apart from perhaps milk and the like which makes sense as they're pretty much wasted stock as soon as the expiry date comes round unlike the seasonal tat which they can just send back to a warehouse and dust off for the year after

Meal deals, which I believe are currently the cheapest on the high street, are staying, I read...

 

[Steddenm]

He still does!

I did read as part of the restructure they're going to axe fresh foods apart from perhaps milk and the like which makes sense as they're pretty much wasted stock as soon as the expiry date comes round unlike the seasonal tat which they can just send back to a warehouse and dust off for the year after

They bought out a local Norfhern freezer chain in order to bring fresh and frozen into their own stores but for the life of me can't remember what they were called (Just remembered it was Fultons Foods)

The original freezer stores did all the Xsell stuff (McDonald's overstock mainly) which is now sold at Heron Foods (and has expanded from the McDonald's overstock to Lidl bakery, KFC and more recently M&S cakes).

 

[TheTTTEGeek]

He still does!

I did read as part of the restructure they're going to axe fresh foods apart from perhaps milk and the like which makes sense as they're pretty much wasted stock as soon as the expiry date comes round unlike the seasonal tat which they can just send back to a warehouse and dust off for the year after

Thanks for updating me as Ashens is a show that i enjoy relaxing to whenever i'm stressed out

 

[trebor79]

They bought out a local Norfhern freezer chain in order to bring fresh and frozen into their own stores but for the life of me can't remember what they were called (Just remembered it was Fultons Foods)

The original freezer stores did all the Xsell stuff (McDonald's overstock mainly) which is now sold at Heron Foods (and has expanded from the McDonald's overstock to Lidl bakery, KFC and more recently M&S cakes).

Wait, what? You can buy McDonald's and KFC stuff to make at home?
I never knew that!

 

[Darandio]

Wait, what? You can buy McDonald's and KFC stuff to make at home?
I never knew that!

Not everything you can get from McDonald's and KFC and only when certain things are available after an overstock, it's not like there's a constant daily supply. In terms of McDonalds i've seen hash browns, chicken nuggets and apple pies. The only KFC thing i've ever seen are the chicken mini fillets, there has been popcorn chicken occasionally but i'm not convinced it's theirs.

It's not just takeaway overstock that I see in my local branch though. Pizzas are a regular one and they are Goodfellas, a load of Birds Eye stuff has been there in the past as well. Much of the fish is Youngs. My local Farmfoods also stocks a similar repackaged budget range but I cannot remember the name of it and it's mostly pizzas which for the most part are Dr Oetker Ristorante.

 

[DoubleLemon]

I wonder if, to some extent, the rise of food bank usage may have detracted from Poundland's market.

Per g/ml/etc, Poundland often wasn't cheaper than the supermarkets, even when everything was actually just £1. It was more that they sold smaller packs of e.g. washing powder which people were able to afford on smaller incomes, whereas the only other shops selling small packs were corner shops who charged a fortune.

There is a Wendover (great youtuber) which goes over the rise of dollar stores in the US, the reasoning is the same..

 

[Anonymous10]

There is a Wendover (great youtuber) which goes over the rise of dollar stores in the US, the reasoning is the same..

Quite, also recommend taking a look at their second channel - half as interesting and a similar chanel real life lore. All of which have covered topics similar to this.

 

[TheTTTEGeek]

Quite, also recommend taking a look at their second channel - half as interesting and a similar chanel real life lore. All of which have covered topics similar to this.

Didn't realize the HaI was connected to Wendover

 

[Anonymous10]

Didn't realize the HaI was connected to Wendover

Pretty sure its the same guy, Sam. He also runs a great game show called jet lag and nebula, some amazing documentaries on there also covering disappearing businesses.

 

[CC 72100]

Pretty sure its the same guy, Sam. He also runs a great game show called jet lag and nebula, some amazing documentaries on there also covering disappearing businesses.

Yes, all the same guy!

 

[brad465]

Seems as though having products popular with royal family members is no longer a guarantee of success:

Seraphine: Maternity brand worn by Kate enters administration

Consultancy firm Interpath confirmed that it had been appointed as administrators by maternity brand Seraphine.

www.bbc.co.uk

The maternity fashion retailer Seraphine, whose clothes were worn by the Princess of Wales during her three pregnancies, has ceased trading and entered administration.
Consultancy firm Interpath confirmed to the BBC on Monday that it had been appointed as administrators by the company and that the "majority" of its 95 staff had been made redundant.
It said the brand had experienced "trading challenges" in recent times with sales being hit by "fragile consumer confidence".
The fashion retailer was founded in 2002, but perhaps hit its peak when Catherine wore its maternity clothes on several occasions, leading to items quickly selling out.
Prior to the confirmation that administrators had been appointed, which was first reported by the Financial Times, Seraphine's website was offering discounts on items as big as 60%. Its site now appears to be inaccessible to shoppers.
The main job of administration is to save the company, and administrators will try to rescue it by selling it, or parts of it. If that is not possible it will be closed down and all its saleable assets sold.
Will Wright, UK chief executive of Interpath, said economic challenges such as "rising costs and brittle consumer confidence" had proved "too challenging to overcome" for Seraphine.
Interpath said options are now being explored for the business and its assets, including the Seraphine brand.
The retailer's flagship store was in Kensington High Street, London, but other well-known shops, such as John Lewis and Next, also stocked its goods.
The rise in popularity of Seraphine, driven in part by Royalty wearing its clothes, led to the company listing on the London Stock Exchange in 2021, before being taking back into private ownership in 2023.
Interpath said in April this year, the company "relaunched its brand identity, with a renewed focus on form, function and fit".
"However, with pressure on cashflow continuing to mount, the directors of the business sought to undertake an accelerated review of their investment options, including exploring options for sale and refinance," a statement said.
"Sadly, with no solvent options available, the directors then took the difficult decision to file for the appointment of administrators."
Staff made redundant as a result of the company's downfall are to be supported making claims to the redundancy payments service, Interpath added.