15225 replies to this topic

[DayTraderDad]

From:
https://www.biznews....off-debt-bigger
 
Quote:
"
The unit’s net debt was €1.72bn at the end of last year, [/size]outstripping its equity[/size]
"

Great finally you got to understand the real damage MJ did well done!!!

[DayTraderDad]

Quote:
"
Sales at Conforama significantly deteriorated between 2017 and 2018
"
 
I remember in early 2018 Steinhoff said that Conforma was a "turn around" opportunity .... so much for a "turn around".

Tom do you have any experience on business turnaround? Do you know how Conforama operates?
If you had any experience in turnaround stories you would know it is all about time first you need to stabilise the company (this is now done) then
focus on restructuring to remove loss making operations and allow it to grow.
Now surely you must understand you cannot change Conforama in 5 minutes and expect wonder results. I only know one guy that can do that and he is MJ
but we know now what happens when he turns business around and not sure he would like his old job back!!!!

[Tom]

From:

https://www.biznews....off-debt-bigger

 

Quote:

"

The unit’s net debt was €1.72bn at the end of last year, outstripping its equity

"

Edited by Tom, 12 April 2019 - 02:48 PM.

[DayTraderDad]

Just cannot believe when MJ was running on his own people/analyst/media were so confident about SNH not even questioning
why MJ was buying a business that was not making money and all of a sudden making big profits yet now SNH
has appointed high level people to ensure proper controls are in place and people/analyst/media thinks SNH is a ripoff!!!

[DayTraderDad]

http://www.steinhoff...resentation.pdf
 
This simply means that Conforama is technically bust.
The money that Steinhoff dedicated for it a couple of months ago didn't sort it out.
It has much more debt than assets, and cannot service its debt, and even if it gets liquidated then it will not cover its debt.
And getting even more debt will increase the risk.
 
So basically the shareholders are cornered, and the creditors are stuck, while some just benefit out of this situation.

Tom I don't know what is your background but for sure a bricklayer cannot see and do what a electrician does and vise versa.
Further is a person can only see negative then the world is always dark does not matter if its a beautiful day!!!

[Tom]

From:

 

https://www.biznews....off-debt-bigger

 

Quote:

"

Steinhoff debt mountain keeps getting bigger

 

Steinhoff, the multinational retail giant grown by South African business players, has been teetering on the brink of collapse since late 2017.

"

 

Quote:

"

Sales at Conforama significantly deteriorated between 2017 and 2018

"

 

I remember in early 2018 Steinhoff said that Conforma was a "turn around" opportunity .... so much for a "turn around".

Edited by Tom, 12 April 2019 - 02:38 PM.

[Tom]

From:

 

https://www.biznews....off-debt-bigger

 

Quote:

"

Steinhoff debt mountain keeps getting bigger

 

Steinhoff, the multinational retail giant grown by South African business players, has been teetering on the brink of collapse since late 2017.

"

Edited by Tom, 12 April 2019 - 02:31 PM.

[Tom]

http://www.steinhoff...resentation.pdf

 

This simply means that Conforama is technically bust.

The money that Steinhoff dedicated for it a couple of months ago didn't sort it out.

It has much more debt than assets, and cannot service its debt, and even if it gets liquidated then it will not cover its debt.

And getting even more debt will increase the risk.

 

So basically the shareholders are cornered, and the creditors are stuck, while some just benefit out of this situation.

Edited by Tom, 12 April 2019 - 01:13 PM.

[DayTraderDad]

Interesting article: https://www.bfmtv.co...nt-1670929.html

Highlights:

"A first tranche is intended in the immediate future to repay part of the debt and put back the cash flow of the sign of
furniture and decoration. The second, in the first quarter of 2020, would be used to "restructure" "deficit" stores,
explains Jacques Mossé-Biaggini (FO). The CFDT confirmed these announcements.
The direction of the sign, however, does not make any comment for the moment."

[DayTraderDad]

Thanks DTD, as you and Captain pointed out many times MF and Conforama are still the achilles heel for SNH.   MF seems to be out off the woods, and Conforama has a plan.
 
One of the pillars of conforama turn-around is e-commerce.  Digital commerce already part of the 'toolbox' that could be leveraged.  Old article: mid term last year (when I bought first batch of SNH).
 
https://www.cmo.com....ailing-reality/
 
if the vultures and trolls stop circulating and allow SNH to achieve the synergies and restructuring there is a winner. 
 
There would always be the tom, **** and harry - we just need to classify who is who , it could be that the names converge into one and I guess it would not be tom.

Thanks for the link its a great article!!!

[DayTraderDad]

Canforama is a loss making business, and even Steinhoff most optimistic blue sky predictions for the next year and the year after, still place it as loss making cash burning machine.
 
Taking even more debts (called recapitalization by Steinhoff) will just push Conforama and Steinhoff to the creditors' custodianship and eventually ownership, and strip the share holders from their rights.

Tom the way to sort out/rehabilitate an alcoholic the first step the person needs to accept that he has a alcohol problem.
The treatment there after commences and after a while the person is rehabilitated and feeling great again.

Very much the same with business the first step to recovery is to accept that things are not well and making losses so that a recovery plan is put in place and this is exactly what the restructuring is all about in SNH.

MF sorted there was news that Greenlit Brands also going through a restructure to make it more profitable and the last non profitable business to
be sorted is Bensons for Beds.

How many Conforama stores have you visited? Well I have and they are very well displayed and better quality than IKEA in they kitchens and
furniture.
So yes lots of work needs to happen in Conforama but Steinhoff Management has the tools and ability now all its needed is time.
Once the dust are settle they will again be able to restructure the debt for better interest rate because in Europe interest is very low.

Do you know what is the Euro Libor rate today?

Edited by DayTraderDad, 12 April 2019 - 11:01 AM.

[DayTraderDad]

Far from nearly there my friend

Great thanks so tell me what you think that still needs to be done to get the restructure in place?

[Tom]

Canforama is a loss making business, and even Steinhoff most optimistic blue sky predictions for the next year and the year after, still place it as loss making cash burning machine.

 

Taking even more debts (called recapitalization by Steinhoff) will just push Conforama and Steinhoff to the creditors' custodianship and eventually ownership, and strip the share holders from their rights.

Edited by Tom, 12 April 2019 - 09:16 AM.

[Lionelza1]

Thank you Steinhoff management another milestone overcomes nearly there!!!!

http://www.steinhoff...resentation.pdf
https://www.dgap.de/...?newsID=1141471
https://www.dgap.de/...?newsID=1141477

Far from nearly there my friend

[Lionelza1]

Thank you Steinhoff management another milestone overcomes nearly there!!!!

http://www.steinhoff...resentation.pdf
https://www.dgap.de/...?newsID=1141471
https://www.dgap.de/...?newsID=1141477

• Conforama’s revenue has eroded between FY16 and FY18 while operating expenses have increased driven by store opening plans, new marketing campaigns and numerous projects initiated before the Steinhoff Group’s announcements on 6-Dec-17 • Revenue has significantly deteriorated over the FY17—FY18 period (-4% on likefor-like) mainly driven by:

‒ Lower revenue contribution from France operations, linked to overall strong decrease of market;

‒ The effect of the Steinhoff Group distress in early 2018, especially the loss of credit insurance resulting in lack of product availability;

‒ Negative contribution from new business initiatives launched in France in 2017;

‒ Underperformance in Italy and lower contribution of Switzerland in FY18 are both driven by difficult market environment. • As of end of January 2019, Conforama operates through a network of :

‒ 313 stores of which 212 in France and 101 internationally;

‒ 22 affiliates of which 14 Mon Lit Et Moi, 3 in France and 5 in French Overseas Departments and Territories.

 

 

Revenue down whilst they opened new stores is problematic! Revenue suppose to increase....tell tell signs to shut down redundant stores imo (as they done with MF...good)....blame game on economy challenges (easy way out), so what are they doing and how they do it will be key to success....i recall how they blamed the soccer world cup, thats not the way to do it

 

overall it looks ****....its always made to look good on paper, reality is a diff story.....these ouks have a friggen mountain to climb......BUT....never impossible...3 yrs here we come

[JK001]

Thank you Steinhoff management another milestone overcomes nearly there!!!!

http://www.steinhoff...resentation.pdf
https://www.dgap.de/...?newsID=1141471
https://www.dgap.de/...?newsID=1141477

 

Thanks DTD, as you and Captain pointed out many times MF and Conforama are still the achilles heel for SNH.   MF seems to be out off the woods, and Conforama has a plan.

 

One of the pillars of conforama turn-around is e-commerce.  Digital commerce already part of the 'toolbox' that could be leveraged.  Old article: mid term last year (when I bought first batch of SNH).

 

https://www.cmo.com....ailing-reality/

 

if the vultures and trolls stop circulating and allow SNH to achieve the synergies and restructuring there is a winner. 

 

There would always be the tom, **** and harry - we just need to classify who is who , it could be that the names converge into one and I guess it would not be tom. 

[DayTraderDad]

Thank you Steinhoff management another milestone overcomes nearly there!!!!

http://www.steinhoff...resentation.pdf
https://www.dgap.de/...?newsID=1141471
https://www.dgap.de/...?newsID=1141477

[DayTraderDad]

Stagner resignation sparks talk about TSI, Matt Firm reunion

https://www.furnitur...el=tw-20084456#

[DayTraderDad]

"We are celebrating Steve Stagner's incredible 23-year contribution to building Mattress Firm into the number one specialty mattress retailer. Steve's leadership has been critical through this period where we needed to return the business to positive momentum," said the Mattress Firm Board. "The Board is pleased with the speed of sales recapture, profitability and liquidity improvement to date. Mattress Firm is in a strong go-forward position as we look to the next chapter."

[DayTraderDad]

Here former  TTs need to win 2 things:
1- The urgency.
2- If 1 was won then the application demand, otherwise former TT can apply on a non-urget basis, and see if they can win.
 
I'm not sure if they will win or not, as even if Steinhoff sell or not more of their shares in PEPKOR (more than what they already sold early last year in PEPKEOR), still in any case the plaintiff (former TT) can demand a compensation for the loss on their shares' price in SNH.
 
In my personal opinion, former TT, CW ,GTF, are all share holders, just like any other aggrieved share holders with no difference at all, and should they get any compensation, then the same compensation percentage should also be given to all the other aggrieved shareholders.

Tom read the article : https://www.business...ourt-of-appeal/

Highlight:
Lawyers representing ex-ABIL directors, Clyde & Co, said they were not surprised that the matter was referred to the Supreme Court of Appeal, given its importance and public interest.

“We expected that it might go to the Supreme Court of Appeal and we are quite happy for it to go there because that will provide certainty on the issue of whether shareholders in their individual capacity can sue directors of a company for breach of fiduciary duty. We remain optimistic that the court will find in our clients’ favour,” said Clyde & Co.