We all have that feeling to some degree, something we really want and if we cut our budget for one week we can buy the suit we wanted to have, so we buy the suit, then we push forward the budgeting to the last week, then we delusional remind ourselves that if we make the adjustment to our menu to the last three days, we don’t have to adjust our budgets, so we do that, we keep on pushing forward until it is the 25th day of the budget, we bought the suit and we ran out of money, we pushed the menu forward, the budget forwards and now that we have 6 days to go we are running out of money. We have all done it, whether it was to buy a gaming console, a laptop, fashion, concert tickets, we can come up with all kinds of reasons, we have all done it. This is how I at present see Debenhams. In the article ‘Debenhams hires liquidator in contingency plan’ which was published 6 hurts ago (at https://www.bbc.com/news/business-53797371) gives us “if the administrators, FRP Advisory, fail to find a buyer or new investment, Debenhams faces liquidation – putting 14,000 jobs at risk. A spokesperson for the department store said: “Debenhams is trading strongly, with 124 stores reopened and a healthy cash position.”” Yes we can push forward all we can and then ignore it, yet when we consider “It gets to be even worse when the Guardian prints the pragmatic “It’s all hairdressers and coffee shops and nail bars. People won’t come here to shop – they’ll go to a bigger town like Canterbury instead“, which in itself is a truth, making me wonder what is getting into some of these delusional big brands. The entire setting of the larger players has been under fire for the longest of time and the essential need to revisit locations is becoming an essential need for all of them, as such the statement: “Conservative MP Damian Green described the news as “very disappointing”. On Twitter, he wrote: “We need to redouble efforts to strengthen the town centre.”” becomes one of worry.” A few small details I revealed to the readers in April 2019, as such the statement of ‘Debenhams is trading strongly, with 124 stores reopened and a healthy cash position’ is nothing short of delusional. Now, we cannot blame the situation completely on Debenhams, because they have never faced anything like the Covid-19 situation and it would be unfair for them to be completely ready, yet dwindled resources is on them. I spoke about some of it in April 2019 in ‘When a dream is too delusional’ (at https://lawlordtobe.com/2019/04/28/when-a-dream-is-too-delusional/), as such the delusional part was pretty visible then too. So how from a distance the clear part of ‘124 stores reopened and a healthy cash position’ that comes debatable this clear is an issue, especially when others are merely accepting the news without a clear investigation into the debatable mindset of Debenhams corporate officers is a bit of a question. I know that there are sets of stations where they (apparently) know what they are doing is fine, but the small ‘124 stores reopened’, whilst a year ago my article ended with “I wonder which of those should never have been made, but that is merely my view on the matter and with up to 50 stores up for closure I personally reckon I might have a case on that.” So as we see 50 stores up for closure and a year later we see 124 stores reopened, I wonder if some people are stretching the stage where optionally (and speculatively) tax laws were used to push into a nice neutral setting and now that we see “2,500 more jobs, on top of 4,000 cuts it announced in May”, all whilst the larger stage is set to “Debenhams faces liquidation – putting 14,000 jobs at risk” and no one asks serious questions as the jobs for 14,000 people are on the line. Is it me or is there a clear case for us all to asks questions of these (what I might optionally incorrectly call) tax shelters? I wonder what their so called “healthy cash position” is.
A station of all kinds of impressions and interpretations, but the truth is that no matter how ‘great’ Debenhams is shown, it is a bleeding behemoth and the 14,000 depending people are about to be thrown on the sidewalk, I am pretty certain that the board of Debenhams will phrase it differently.
SO in the end we can think of it in any way possible, but the stage of these houses is pretty much over, Covid-19 made sure of that and those in doubt, consider “Debenhams entered a pre-pack administration which allowed it to keep trading” and investigate who made that happen, what allowed the station of ‘keep trading’ whilst there is actually no significant amount of consumer cash is going into these places, not when you state it in relationship to the cost that these centres have, the balance of that equation might surprise you.