Empire Direct

On 20 Jan, 08:52, "Brian Gaff" wrote:
Its the old story. The banks refused to stump up the credit to buy the xmas
stock these shops wanted. Its what happened to Woolies as well.
Brian


The suppliers of Woolworth could not get trade insurance to deal with
them, so supplying them became risky.

I wonder if the same has happened to Empire Direct?

John

In article ,
Brian Gaff wrote:
Its the old story. The banks refused to stump up the credit to buy the
xmas stock these shops wanted. Its what happened to Woolies as well.

If they have to use credit from banks to buy stock it's no wonder they've
collapsed.

--
*I'll try being nicer if you'll try being smarter

Dave Plowman London SW
To e-mail, change noise into sound.

On 20 Jan, 12:20, wrote:
Response in-line...

www.empiredirect.co.uk
They have been closed down.

I was watching BBC News Channel when it came up as breaking news at
the bottom of the screen. *I could not believe it!

Apparently they had to call in the administrators due to a lack of
stock. *This tells me that suppliers were not supplying them...that
must be due to bills not being paid on time. *Just a guess.

bills not being paid full stop, but a very good guess.

They claimed to be cheaper than others but they were not for a while now.
So a bit surprised but maybe they did not get the volume of sales.

Their overheads were low, but then they opened 14 shops and perhaps
they lost their low cost competitive advantage?

I bought new white goods from a local Empire Direct Store and they
were selling the washing machine at less than cost (?) to them. Very
keen at the time for what I got.

In article
..com, Mike scribeth thus
On 20 Jan, 12:20, wrote:
Response in-line...

www.empiredirect.co.uk
They have been closed down.

I was watching BBC News Channel when it came up as breaking news at
the bottom of the screen. *I could not believe it!

Apparently they had to call in the administrators due to a lack of
stock. *This tells me that suppliers were not supplying them...that
must be due to bills not being paid on time. *Just a guess.

bills not being paid full stop, but a very good guess.

They claimed to be cheaper than others but they were not for a while now.
So a bit surprised but maybe they did not get the volume of sales.

Their overheads were low, but then they opened 14 shops and perhaps
they lost their low cost competitive advantage?

I bought new white goods from a local Empire Direct Store and they
were selling the washing machine at less than cost (?) to them. Very
keen at the time for what I got.

I've just had a letter from my credit card company saying that their
increasing their interest rates as they have to cover increasing credit
card losses..

I presume that a lot of goods get paid for by credit cards these days
and hence when someone goes tits up the credit card companies have to
swallow the losses ?.

As well as users defaulting on payments..
--
Tony Sayer

Dave Plowman (News) wrote:

Its the old story. The banks refused to stump up the credit to buy the
xmas stock these shops wanted. Its what happened to Woolies as well.

If they have to use credit from banks to buy stock it's no wonder they've
collapsed.


Many companies work with little operating money in the bank, so have
to rely upon credit from the bank and it isn't uncommon to find companies
with very little stock, as in they only have sufficient to supply
customers and shops for a few days ahead.

tony sayer wrote:

I've just had a letter from my credit card company saying that their
increasing their interest rates as they have to cover increasing credit
card losses..

I presume that a lot of goods get paid for by credit cards these days
and hence when someone goes tits up the credit card companies have to
swallow the losses ?.

As well as users defaulting on payments..


It is common advice given by many advisors on the TV and in financial
circles to use the credit card, as the purchase in many cases is insured.

In article ,
wrote:
Its the old story. The banks refused to stump up the credit to buy
the xmas stock these shops wanted. Its what happened to Woolies as
well.

If they have to use credit from banks to buy stock it's no wonder
they've collapsed.

Many companies work with little operating money in the bank, so have
to rely upon credit from the bank and it isn't uncommon to find companies
with very little stock, as in they only have sufficient to supply
customers and shops for a few days ahead.

If that's the case they must be paying *their* suppliers COD which means
they have a poor credit rating. And if banks decide to lend to those it's
no wonder we're in trouble.

--
*I'm really easy to get along with once people learn to worship me

Dave Plowman London SW
To e-mail, change noise into sound.

On 20 Jan, 13:27, tony sayer wrote:
In article
.com, Mike scribeth thus



On 20 Jan, 12:20, wrote:
Response in-line...

www.empiredirect.co.uk
They have been closed down.

I was watching BBC News Channel when it came up as breaking news at
the bottom of the screen. *I could not believe it!

Apparently they had to call in the administrators due to a lack of
stock. *This tells me that suppliers were not supplying them...that
must be due to bills not being paid on time. *Just a guess.

bills not being paid full stop, but a very good guess.

They claimed to be cheaper than others but they were not for a while now.
So a bit surprised but maybe they did not get the volume of sales.

Their overheads were low, but then they opened 14 shops and perhaps
they lost their low cost competitive advantage?

I bought new white goods from a local Empire Direct Store and they
were selling the washing machine at less than cost (?) to them. Very
keen at the time for what I got.

I've just had a letter from my credit card company saying that their
increasing their interest rates as they have to cover increasing credit
card losses..

I presume that a lot of goods get paid for by credit cards these days
and hence when someone goes tits up the credit card companies have to
swallow the losses ?.

I always make major purchases with Credit Card and pay it off ASAP.
Like you said someone has to pay for it without impacting profits too
much.

As well as users defaulting on payments..
--
Tony Sayer

wrote in message
...
On 20 Jan, 08:52, "Brian Gaff" wrote:
Its the old story. The banks refused to stump up the credit to buy
the xmas
stock these shops wanted. Its what happened to Woolies as well.
Brian


The suppliers of Woolworth could not get trade insurance to deal with
them, so supplying them became risky.

I wonder if the same has happened to Empire Direct?

John



To be exact its credit insurance - insurance that covers payment of the
account until the account is cleared. With ED it was withdrawn in late
October so in smoe ways it's surprising that it has taken so long for
them to go under.

It was also the cause that many of the other retail outlets and some
manufacturers have gone as well - and there's lots more to come yet.



--
Woody

harrogate three at ntlworld dot com

"tony sayer" wrote in message
...
In article
.com, Mike scribeth thus
On 20 Jan, 12:20, wrote:
Response in-line...

www.empiredirect.co.uk
They have been closed down.

I was watching BBC News Channel when it came up as breaking news at
the bottom of the screen. I could not believe it!

Apparently they had to call in the administrators due to a lack of
stock. This tells me that suppliers were not supplying them...that
must be due to bills not being paid on time. Just a guess.

bills not being paid full stop, but a very good guess.

They claimed to be cheaper than others but they were not for a while
now.
So a bit surprised but maybe they did not get the volume of sales.

Their overheads were low, but then they opened 14 shops and perhaps
they lost their low cost competitive advantage?

I bought new white goods from a local Empire Direct Store and they
were selling the washing machine at less than cost (?) to them. Very
keen at the time for what I got.

I've just had a letter from my credit card company saying that their
increasing their interest rates as they have to cover increasing credit
card losses..

I presume that a lot of goods get paid for by credit cards these days
and hence when someone goes tits up the credit card companies have to
swallow the losses ?.


I thought that the credit card companies paid several weeks late, so they
have an opportunity not to pay a disputed amount?


As well as users defaulting on payments..

What I can't work out is why the goverrment thinks it a good idea to take on
poor lending risks that the banks won't touch.


--
Tony Sayer





--
Michael Chare