Maplin to the wall, this can't happen

[Nut]

keep your fingers crossed for us all

[Nightwatch]

I think it's sad that any business suffers, but with t'internet and out of town retail parks etc. Doesn't just effect small business. Where am I going to get my relay units now!!

[WotEver]

11 minutes ago, Nightwatch said:

Just been announced, Maplin has gone into administration. As has Toys arrrrrrrr uz. 

Yup. The Black Country kids’ store ‘Toys Am We’ is doing okay though. 

5 minutes ago, Nightwatch said:

Where am I going to get my relay units now!!

Ebay. 

Or Farnell. Or RS. 

[matty40s]

Are they shut or still trading..... cheap drone batteries needed...

[Nightwatch]

It was mentioned that they have gone. But I would 'assume' into administration. Which may well mean still trading. 

[IanM]

BBC website says Maplin will continue trading through the Administration process.

http://www.bbc.co.uk/news/business-43223175

Edited February 28, 2018 by IanM

[Athy]

I don't quite understand "administration" when applied to businesses. Sometimes it seems to mean that the Official receiver, or some such office, will continue to run the business, and it will keep trading for years. In other instances, everything including the shelves and the office chairs gets flogged off double-quick and the building is empty within weeks - witness the rapid and cruel run-down of the much-loved B.H.S.

[WotEver]

4 minutes ago, Athy said:

I don't quite understand "administration" when applied to businesses. Sometimes it seems to mean that the Official receiver, or some such office, will continue to run the business, and it will keep trading for years. In other instances, everything including the shelves and the office chairs gets flogged off double-quick and the building is empty within weeks - witness the rapid and cruel run-down of the much-loved B.H.S.

I believe it comes down to the administrator’s opinion as to whether there’s anything salvageable (which there may well be with Maplin) or if it’s a basket case (as was BHS). If Maplin has a basically strong business model but was suffering from a cash shortage then the administrator may be able to sell it as a going concern. Or he may pare it down and sell the profitable bits. 

What you can be sure of is that whatever happens, the administrator will get paid in full for his services. 

[Athy]

Just now, WotEver said:

I believe it comes down to the administrator’s opinion as to whether there’s anything salvageable (which there may well be with Maplin) or if it’s a basket case (as was BHS). If Maplin has a basically strong business model but was suffering from a cash shortage then the administrator may be able to sell it as a going concern. Or he may pare it down and sell the profitable bits. 

I see. I assume that be a "basket case" you mean that it was beyonbd saving? That was what surprised me, as B.H.S. always looked like a thriving shop. We used to buy all our lighting requirements there (their lighting departments were excellent) and the shops always seemed to have plenty of people in them.

[WotEver]

4 minutes ago, Athy said:

I see. I assume that be a "basket case" you mean that it was beyonbd saving? That was what surprised me, as B.H.S. always looked like a thriving shop. We used to buy all our lighting requirements there (their lighting departments were excellent) and the shops always seemed to have plenty of people in them.

When I first went into business for myself the best piece of advice I was given was “Be very sure never to become a ‘busy idiot’ “

BHS fell into the Busy Idiots category albeit in a much bigger fashion. Busy shops, high turnover, high overheads, negative profit margin. 

Another good business maxim is “Turnover is vanity. Profit is sanity.”

[Nightwatch]

Still trading. 

[MtB]

13 minutes ago, Athy said:

I see. I assume that be a "basket case" you mean that it was beyonbd saving? That was what surprised me, as B.H.S. always looked like a thriving shop. We used to buy all our lighting requirements there (their lighting departments were excellent) and the shops always seemed to have plenty of people in them.

 

The trouble is, any business can 'thrive' if it is selling goods too cheap to cover its fixed costs (rent, staff etc). The trick in business is to sell at a high enough price to still be left with a profit after those fixed costs (called overheads) have been paid. BHS simply couldn't manage this. And nor it appears, could Maplin and TRU.

Businesses who only sell on the internet supposedly have lower fixed costs (no expensive high street shops to run, just a cheap industrial unit in the back of nowhere) so can sell profitably at a lower price than real life shops so hoover up a damagingly large proportion of the available sales.

Edited February 28, 2018 by Mike the Boilerman

[WotEver]

2 minutes ago, Mike the Boilerman said:

Businesses who only sell on the internet supposedly have lower fixed costs so can sell profitably at a lowr price than real life shops...

An extreme example of which is Amazon. They really hurt Waterstones and the like initially and look at the size of them now. 

[MtB]

7 minutes ago, WotEver said:

When I first went into business for myself the best piece of advice I was given was “Be very sure never to become a ‘busy idiot’ “

BHS fell into the Busy Idiots category albeit in a much bigger fashion. Busy shops, high turnover, high overheads, negative profit margin. 

Another good business maxim is “Turnover is vanity. Profit is sanity.”

 

My accountant used to scathingly say businesses run on the 'busy idiot' basis are more accurately described as hobbies. It's far easier to give your products away and kid yourself than it is to skillfully sell at a truly profitable price. 

[WotEver]

5 minutes ago, Mike the Boilerman said:

... nor it appears, could Maplin...

Reading between the lines I suspect they might have been able to ride the storm if they could have secured a loan to tide them over. However, with the financial industry being as risk-averse as it is currently, nobody wanted to help them out. 

[Athy]

9 minutes ago, Mike the Boilerman said:

 

The trouble is, any business can 'thrive' if it is selling goods too cheap to cover its fixed costs (rent, staff etc). The trick in business is to sell at a high enough price to still be left with a profit after those fixed costs (called overheads) have been paid. BHS simply couldn't manage this.

Yes, I realise that of course. It simply surprises me that such a long-established business as B.H.S. didn't seem to realise it.

They were attractive shops - Mrs. Athy used to reckon that B.H.S. stood for "Bring Home Something" as, most times that we went in one of their branches, we did just that.

[Alan de Enfield]

36 minutes ago, Athy said:

In other instances, everything including the shelves and the office chairs gets flogged off double-quick and the building is empty within weeks - witness the rapid and cruel run-down of the much-loved PILLINGS LOCK MARINA

 

[Athy]

5 minutes ago, Alan de Enfield said:

 

Very droll - but was that place "well loved"? I have, I hasten to add, never been there, so my impression of it is based only on what others have written. Also, isn't it still open?

EDIT: yes, it appears to be still open.

Edited February 28, 2018 by Athy

[Tim Lewis]

47 minutes ago, Athy said:

I don't quite understand "administration" when applied to businesses. Sometimes it seems to mean that the Official receiver, or some such office, will continue to run the business, and it will keep trading for years. In other instances, everything including the shelves and the office chairs gets flogged off double-quick and the building is empty within weeks - witness the rapid and cruel run-down of the much-loved B.H.S.

It has happened in the Waterways sphere. The owners of the Chelmer & Blackwater Navigation went into administration. The administrators sold off what they could and the IWA stepped in to run the Navigation. The owners eventually came out of administration but with not a lot to do!

Tim

Edited February 28, 2018 by Tim Lewis

[Alan de Enfield]

31 minutes ago, Athy said:

Very droll - but was that place "well loved"? I have, I hasten to add, never been there, so my impression of it is based only on what others have written. Also, isn't it still open?

EDIT: yes, it appears to be still open.

And that is what is wrong with the 'system.

Go bust, owing £100's of thousands, set up a new company, appoint a student as a director and carry on as before.

[BlueStringPudding]

Just read an article blaming Brexit as the final straw that killed it.

Toys R Us is going too, it looks like

http://www.bbc.co.uk/news/business-43219651

 

[system 4-50]

11 minutes ago, BlueStringPudding said:

Just read an article blaming Brexit as the final straw that killed it.

yes, as soon as the Brexit vote result came in, I thought, I'm not shopping at Maplins anymore.

[MtB]

3 minutes ago, system 4-50 said:

yes, as soon as the Brexit vote result came in, I thought, I'm not shopping at Maplins anymore.

 

Xactly. Directors of failing firms donarf come out with some shyte sometimes in a vain attempt to explain what went wrong!!

Brexit is going to be taking the rap for all manner of totally unrelated problems over the next few years I predict. 

[Alan de Enfield]

I think I have only ever been in Maplins once.

We were in Hull marina and wanted some LED bulbs, saw Maplins was only about 500 yards away so decided to have a mooch down and see what they had got.

Was a little surprised that outside the doors they had all sorts of 'displays' that looked more like Aunty Wainwrights than an electrical / electronics store. Most of the displays seeme to be concentrated on sweeping brushes, dustpans, shovels and a few sledges - not a problem you might think - just a bit of seasonal diversification. 

However this was in August, (and they didn't sell the LED bulbs we wanted - plenty of computer printers and 'drones' tho').

[alan_fincher]

Rescue talks have failed to save Maplins

http://www.bbc.co.uk/news/business-43223175

Toys R Us also in administration

http://www.bbc.co.uk/news/business-43225248

Edited February 28, 2018 by alan_fincher