15225 replies to this topic

[LarryK]

if you followed the MF debarcle you would be aware that the store ramp up to 3000 was dubious and some very high rentals were agreed.

also MF purchased competitors to lock in clients resulting in duplicate stores.

Bankruptcy allows exit from leases- landlords may either renegotiate their tenancy agreements- especially where this was falsely elevated- or exit the arrangement.

MF have been paying their rentals- they have not forfeited -s o landlords only loose their cash cow.

this is good news- 

Reducing the number of stores have been a main objective for them since their first presentation to their creditors in early 2018

[Investment novice]

Bankruptcy means just that. BANKRUPT!

if you followed the MF debarcle you would be aware that the store ramp up to 3000 was dubious and some very high rentals were agreed.

also MF purchased competitors to lock in clients resulting in duplicate stores.

Bankruptcy allows exit from leases- landlords may either renegotiate their tenancy agreements- especially where this was falsely elevated- or exit the arrangement.

MF have been paying their rentals- they have not forfeited -s o landlords only loose their cash cow.

this is good news-

[LarryK]

Have a look at the link below.

 

https://www.usatoday...ptcy/888040002/

 

 

It is a recent and similar bankruptcy case in the USA. From what I can see, this can be used as a means of closing a vast amount of stores quickly while still keeping open those stores that are performing well. I don't understand what happens to the landlords though ?

 

I am by no means a bankruptcy expert, so I do not understand the full extent and implications of this.

 

I would appreciate any other thoughts from people that may know a little more on bankruptcy and the prospects for a company after bankruptcy.

 

Importantly, I would like to add that not all bankruptcy filings are equal. There are different types that can be filed for, with different outcomes for the creditors.

Landlords are normally big companies with insurance against this type of event. They also have a method to deduct tax suffered by losses, thus negating if not all, but most of their losses.

[Polly]

Have a look at the link below.

 

https://www.usatoday...ptcy/888040002/

 

 

It is a recent and similar bankruptcy case in the USA. From what I can see, this can be used as a means of closing a vast amount of stores quickly while still keeping open those stores that are performing well. I don't understand what happens to the landlords though ?

 

I am by no means a bankruptcy expert, so I do not understand the full extent and implications of this.

 

I would appreciate any other thoughts from people that may know a little more on bankruptcy and the prospects for a company after bankruptcy.

 

Importantly, I would like to add that not all bankruptcy filings are equal. There are different types that can be filed for, with different outcomes for the creditors.

 

Bankruptcy means just that. BANKRUPT!

[Polly]

Polly- fair comment on your version on the outcome- but not always so clear cut-

there are plenty business cases which employed this strategy....

remember this is not news...snh aware of their options as do the creditors who signed the LUA. they all in the know and aware of the future prospects.

The LUA was signed with the complete understanding of SNH and where it is heading.

The issues around MF are on the table- I wont be surprised the focus and turnaround on MF was not initiated by the creditors to ensure that the company is repaired and sold off in a MBO with a new valuation that is considerate of the lease stresses.

you need to understand USA business law and manoeuvrability....especially where this is deliberate...store optimisation- leases renegotiated without penalty; its an exit strategy on lease agreements- stores closed and stores opened, ecommerce a threat and therefore MF have invested in online and brick and mortar in the past 3 months; ...........................for yee of little faith-----and little understanding.............or for yee of too much excitement and blind sided ...the truth will be shared soon with a sens

 

 

Down over 5% means something doesn't it?  

[LarryK]

This share is going to be under pressure, until there's positive news from Steinhoff, which I assume is only 31 Aug. 

 

There's a lot less demand than what I anticipated and media reports like the Mattress Firm one will continue to cause uncertainty.

 

Also, institutionalized investors can't/won't invest until audit/investigation is complete.

[icassim]

Have a look at the link below.

 

https://www.usatoday...ptcy/888040002/

 

 

It is a recent and similar bankruptcy case in the USA. From what I can see, this can be used as a means of closing a vast amount of stores quickly while still keeping open those stores that are performing well. I don't understand what happens to the landlords though ?

 

I am by no means a bankruptcy expert, so I do not understand the full extent and implications of this.

 

I would appreciate any other thoughts from people that may know a little more on bankruptcy and the prospects for a company after bankruptcy.

 

Importantly, I would like to add that not all bankruptcy filings are equal. There are different types that can be filed for, with different outcomes for the creditors.

 

 

[Investment novice]

Says who? after the lawyers and liquidators fees, probably worth zero

Polly- fair comment on your version on the outcome- but not always so clear cut-

there are plenty business cases which employed this strategy....

remember this is not news...snh aware of their options as do the creditors who signed the LUA. they all in the know and aware of the future prospects.

The LUA was signed with the complete understanding of SNH and where it is heading.

The issues around MF are on the table- I wont be surprised the focus and turnaround on MF was not initiated by the creditors to ensure that the company is repaired and sold off in a MBO with a new valuation that is considerate of the lease stresses.

you need to understand USA business law and manoeuvrability....especially where this is deliberate...store optimisation- leases renegotiated without penalty; its an exit strategy on lease agreements- stores closed and stores opened, ecommerce a threat and therefore MF have invested in online and brick and mortar in the past 3 months; ...........................for yee of little faith-----and little understanding.............or for yee of too much excitement and blind sided ...the truth will be shared soon with a sens

[Polly]

.


Filing for bankruptcy not a bad thing... 

Says who? after the lawyers and liquidators fees, probably worth zero

[Ms Jet]

Just saw IN opinion on this..yes if not profitable and do able could help the snh cleanup

[Ms Jet]

Wouldnt this be good gor snh?

[Snippit]

Reuters exclusive:  https://tinyurl.com/y7ecuckc

 

 

[Investment novice]

.
Filing for bankruptcy would allow Mattress Firm to clean up its real estate portfolio and improve cash flow and profitability, analysts at Piper Jaffray Companies wrote in a research note last week.
Many retailers pursue bankruptcy to reject leases, a move to slim their store count, cut their costs and reorganize to continue their business. U.S. discount footwear retailer Payless ShoeSource Inc, for example, closed roughly 700 mall-based stores in bankruptcy last year, while children's clothing shop Gymboree Corp closed about 300

Filing for bankruptcy not a bad thing... Especially in the states.... Does not mean losses gallore...forces the arm of the landlords... Without penalty

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[Investment novice]

Not sure how true this is, published on Reuters a short while ago!

Mattress Firm Is Said to Consider Bankruptcy Filing: Reuters

Monday, August 6, 2018 08:03 PM
By Nathan Crooks

(Bloomberg) --Mattress Firm is considering a potential bankruptcy filing as it seeks ways to get out of leases and shut some of its 3,000 locations that are losing money, Reuters reported, citing people familiar.
Steinhoff International Holdings, the co.’s South African parent, has been working on a deal to restructure the debt of some subsidiaries with creditors
Mattress Firm and Steinhoff are working with consulting firm AlixPartners
No final decision has been made, and plans could change
Representatives for Mattress Firm and AlixPartners declined to comment, Reuters said; Steinhoff did not respond to request for comment

See my post from Sunday.... Its from an analysts speculation and not in keeping with June's results.

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[Burnt as well]

Not sure how true this is, published on Reuters a short while ago!

Mattress Firm Is Said to Consider Bankruptcy Filing: Reuters

Monday, August 6, 2018 08:03 PM
By Nathan Crooks

(Bloomberg) --Mattress Firm is considering a potential bankruptcy filing as it seeks ways to get out of leases and shut some of its 3,000 locations that are losing money, Reuters reported, citing people familiar.
Steinhoff International Holdings, the co.’s South African parent, has been working on a deal to restructure the debt of some subsidiaries with creditors
Mattress Firm and Steinhoff are working with consulting firm AlixPartners
No final decision has been made, and plans could change
Representatives for Mattress Firm and AlixPartners declined to comment, Reuters said; Steinhoff did not respond to request for comment

[Investment novice]

The Hemisphere portfolio does not include retail stores relating to Harveys, Bensons-for-Beds, Conforama, Dealz, Pepkor Europe, Poco and Poundland


I had not realised above.... Wunderba... As the Germans would say... Some more value to be accounted for....

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[leo]

Boring

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[Ms Jet]

http://www.sharenet....eq=18&scode=SNH

[Ms Jet]

http://www.sharenet....eq=18&scode=SNH

[Ms Jet]

I still think there'll be sens release re hemisphere Monday as deadline was 3 august..so theyll need to release something..if positive should see little surge..temporarily..think therell be dip when la grange goes parliment and surge 31 august if results improving..but guess work..anything could happen on this rollercoaster