Well Make Ashley is doing an amazing job of running SD at the moment....
Sports Direct’s annual results statement is an extraordinary document, peppered with shock financial revelations, scathing attacks on financial advisers, and stark warnings about the state of the high street. The idiosyncratic publication often descends into a rant by Mike Ashley, Sports Direct’s founder, controlling shareholder and chief executive.
So bad he can't even find anyone else prepared to take on auditing his basket case of chaos...
His Harrods of the North is looking more and more like the pipe dream everyone else thought it was; shops loose money on zero rent and that's before he's stuffed them full of knock down price shell suits...
He might be a divisive character, but there are 17,000 other people employed for/by his companies.
Bet he’s crying into his billions
He's no mug. He was never interested in house of Fraser or Debenhams, just the properties that will be empty once he's closed them all down
Yes, but he doesn't own the properties does he? Once they are empty they are not earning money but he still has rent and business rates to pay.
Do try and understand how business works.
I'm not a fan, but he keeps a lot of people in some form of job, and he keeps his horrible shops on the high street, attracting people in and towards other high street businesses.
He has a high personal profile, but I bet there are many who do worse and sneak under the radar
Bet he’s crying into his billions
And his employees into their hundreds..
He sold the two big warehouses in Shirebrook just a few months ago. I guess the numbers for that will be in next years results?
Once they are empty they are not earning money but he still has rent and business rates to pay.
Do try and understand how business works.
Several of the 'flagship' House of Fraser stores now have a Sports Direct annex on the side.
Maybe he wants to have an SD store front and centre once the rents have been renegotiated to £1 a week?
Not a given that that would be the most profitable way of doing things. Part of the reason landlords and councils are willing to offer cuts to rent and rates is that HoF, M&S, JL, Debernhams etc act as a magnet on the high street. Without those people wouldn't go into those towns so they stand to lose a lot more if they leave than just that one rent.
They would be unlikely to agree to the same terms for a sports direct store.
I don't know much about anything so I could be wrong.... but.... I don't think there was a massive queue of people lining up to buy HOF?
Even if it was selfish reasons surely keeping the staff in employment for a while longer rather than having (massive) empty shops is a good thing? He might be a bit of a dubious character, but I don't think I'd wish all the staff into unemployment just because I don't like the guy.
He was determined to take over Debenhams as well, and ended up taking a bath to the tune of £120 million as I recall.
He's been on the ascendant for quite some time, it may be he's due a reset.
After all, there's only so many polyester shirts you can sell to the masses before the market is saturated
After all, there’s only so many polyester shirts you can sell to the masses before the market is sweaty
FIFM
He was determined to take over Debenhams as well, and ended up taking a bath to the tune of £120 million as I recall.
Although they probably did him a favour liquidating it, as he could easily have lost more running it. HoF has clearly demonstrated that his midas touch doesn't extend beyond flogging trainers at knock down prices...
So employing 17,000 people on predominantly minimum wage, zero hour contracts topped-up by benefits flogging tat made in sweat shops is a good thing? It's one of the reasons that the UK economy is such a basket case - $hitty businesses with crap productivity subsidised by tax payers money.
So employing 17,000 people on predominantly minimum wage, zero hour contracts topped-up by benefits flogging tat made in sweat shops is a good thing? It’s one of the reasons that the UK economy is such a basket case – $hitty businesses with crap productivity subsidised by tax payers money.
You've just hit on the 'global Britain' Post-brexit model there. Ashley won't give a ****, mind. What's a few million less to someone who's got hundreds? It gets more and more like the victorian age by the day, but the masses are too apathetic and/or thick to do owt about it.
but the masses are too apathetic and/or thick to do owt about it.
Shhhhh - we're fattening them up.
Quite partial to a bit of Mike Ashley Foie Gras personally.
Quite partial to a bit of Mike Ashley Foie Gras personally.
Yeah, but you'll have to have it served to you by a dead-eyed automaton who is alone because the others are chasing a thief out of the shop and if you do decide you don't like it you will have to exchange it for champers instead as no refunds are given.
You misunderstand - we, (the masses) are fattening them (the rich) up.
Yes, but he doesn’t own the properties does he? Once they are empty they are not earning money but he still has rent and business rates to pay.
Do try and understand how business works.
He doesn't yet.
Do try not to be an arrogant twunt.
didn't he everyone at Evans pay rises. That's not bad.
So employing 17,000 people on predominantly minimum wage, zero hour contracts topped-up by benefits flogging tat made in sweat shops is a good thing? It’s one of the reasons that the UK economy is such a basket case – $hitty businesses with crap productivity subsidised by tax payers money.
Look at it the other way, that's 17,000 people employed that can't get a better job* otherwise they would. The joys of the free market I suppose. The alternative is higher unemployment, and if you think zero hours sucks you should try being unemployed.
*swings both ways, either they are unemployable in a better job or/and the economy's in the shitter and there are no better jobs so it's an employers market.
He doesn’t yet.
Do try not to be an arrogant twunt.
Ehhh?
Can you explain what on earth your thought process is?
Amazon are worse and i'm sure you all give them your money without a second thought,but then you cant be smug about tracksuits while wearing your lycra can you:)
Ehhh?
Can you explain what on earth your thought process is?
He basically threatens/blackmails the landlords into giving him incredibly cheap rent then makes a move to buy it/lease it at a knock down price. Allegedly, this whole poor results thing is ammo to use on his landlords
https://www.insider.co.uk/news/mike-ashley-intu-house-fraser-13667216
He basically threatens/blackmails the landlords into giving him incredibly cheap rent then makes a move to buy it/lease it at a knock down price. Allegedly, this whole poor results thing is ammo to use on his landlords
And it would only work if the environment favoured that negotiation tactic. You could say it's about time someone was able to do something about Intu etc's stranglehold over retail. Why aren't there many independent shops around now? Rent levels, landlords, etc as well as other factors. But rent is a huge part of it. As ever, some balance probably works out best but what we may have now is a sort of power ebb and flow. Right now it's flowing away from the landlords who've been making good profits for a long time, but if not / carry on down that road and we just have more high streets full of the same big-brand shops and charity shops. If rent values drop it should be a good thing, IBDs and other local businesses might slot in among them.
TBH my opinion is skewed by the fact I hate day of the dead shopping malls and brand-outlet only high streets, much more so than who I work for (Evans).
Rents on the high street have been disproportionately high for a long time now. The increase in business rates was a royally stupid idea as well.
I really don't believe Ashley's grand play is to buy up high street real estate - that's just nonsense.
As mentioned before, Amazon is the real evil - I can tell you all sorts of horror stories from people who work there and through partnering with them in my line of business. They are heading towards having a dangerous amount of power, yet no one is even questioning it.
JP
I like a good horror story ..Please tell more JJ ..
With regard to Ashley ..my contempt for the man is well documented on other threads ..coming from his complete contempt for a football club that I have supported for over 50 years ..
yet no one is even questioning it
Utterly not true, a good proportion of the world is questioning it.
Yet it is a business that has risen at the right time to fill a need for instant gratification, for anyone who can lift a phone to their face. Amazon as a concept exists because people wanted it, even if they didn't know it in advance.
They will either take over the world, or go the same way as Woolworths once the market turns it's gaze to the next big thing
my contempt for the man is ...coming from his complete contempt for a football club that I have supported for over 50 years ..
If that was the worst thing he had done there would not be a thread about it. Some perpective required, i think.
He basically threatens/blackmails the landlords into giving him incredibly cheap rent then makes a move to buy it/lease it at a knock down price. Allegedly, this whole poor results thing is ammo to use on his landlords
Not seeing anything making those points in your links.
Hilarious! He's now about to buy Jack Wills, can't see that working out. No self respecting Preppy person will go near it once the King to Chavs owns it, and it was loosing money hand over fist before hand!
He is clearly a clever guy when it comes to making money.
And the sneerers who look down on his 'empire', it's just snobbery on your part. They sell some good stuff at bargain prices. How he treats his Staff, is it any different from any other large retailer? A friend says Asda were a truly awful employer. I'm sure there are bad stories about the other big ones too.
As for his Business dealings, Last week I got an insight into a Company I do work for. They have a turnover of ~£112 million. They have interest payments of around £30M a year.
Their total debts were around £500million.
I was pretty shocked at these figures - how can a Company carry on with such debt. The Accountant was quite happy, saying we're borrowing another £100M this year, and expanding our portfolio.He says the only way they can expand is by borrowing more, and making sure they can service that debt, which they can at the moment.
It seems decidedly strange that they are quite happy to get more and more debt, hoping that inflation will help things down the line.
I suspect Mike Ashleys empire is built in such a way too, he has personal wealth, but nowhere near what it costs to run a chain of stores,never mind 3 or 4.
Their total debts were around £500million.
I was pretty shocked at these figures – how can a Company carry on with such debt.
Doesn’t sound very different to having a mortgage
yet no one is even questioning it
Utterly not true, a good proportion of the world is questioning it.
That's not true, though, is it? I don't mean a few people on bike forums, the odd documentary on BBC4 and the occasional expose in a left leaning newspaper. I mean governments, the Competition Commission and its equivalents in other countries, etc. No one of any consequence is seriously questioning it, or the monopolistic position of Google or Facebook. Something is very wrong here.
JP