Sports Direct staying open

[Papas1982]

I think most people in jobs termed as skilled or semi skilled will need to make do with 80% wages.

Considering most peoples cost of living will go down. Its a fair compromise really. Considering redundancy is the likely outcome otherwise.

Staff deemed as unskilled could be in trouble as companies may let them go, knowing they can be replaced easily enough later. Harsh indeed. But most business will make decisions based on that outlook I'd imagine.

 

[Wolf]

I think most people in jobs termed as skilled or semi skilled will need to make do with 80% wages.

Considering most peoples cost of living will go down. Its a fair compromise really. Considering redundancy is the likely outcome otherwise.

Staff deemed as unskilled could be in trouble as companies may let them go, knowing they can be replaced easily enough later. Harsh indeed. But most business will make decisions based on that outlook I'd imagine.

Problem with the SD 80% is they've now been informed tiday 5pm that's it go home however wife has just msg me saying they had an email at 1530 stating they still don't have an update or answer in whether they will be as a company seeking to claim the 80% allowance for their staff as no decision has been made and are yet to even sit down and discuss it as a company. So as of 5pm today all SD employees will no longer be required to work but are still employed by the company without being told if they will receive the money..

You'd think it will happen as its the right thing to do but the uncertainty isn't helping.

 

[rudebhoy]

Wetherspoons are refusing to pay their staff until they actually receive the 80% allowance from the govt. In the meantime the owner has told the staff to feel free to go and get a job at Tesco.

Some real scummy types showing their true colours today.

 

[Lord Tyrion]

Wetherspoons are refusing to pay their staff until they actually receive the 80% allowance from the govt. In the meantime the owner has told the staff to feel free to go and get a job at Tesco.

Some real scummy types showing their true colours today.

I don't know the full facts here but a quick check shows Wetherspoons employs 37-38k people. Obviously many will be part time but that is still a heck of a lot of money going out when they will have not a penny coming in. Precious few companies can leak that much money and still survive. His comments may well have been made to encourage the govt scheme to kick into gear sooner rather than later, focus their minds.

 

[Bazzatron]

When this is all over remember those that tried to take advantage, be it by bumping prices up, exploiting staff or just generally being a bit selfish and take your cash elsewhere.

 

[Deleted member 17920]

When this is all over remember those that tried to take advantage, be it by bumping prices up, exploiting staff or just generally being a bit selfish and take your cash elsewhere.

I sincerely hope people do remember.

There are some truly shocking companies out there right now who don't deserve to get through this.

Its the poor staff that have to tell customers they cant have a refund whilst the management sit on massive fat pay cheques not giving a toss about the long term damage this will have to the company!

 

[Papas1982]

Problem with the SD 80% is they've now been informed tiday 5pm that's it go home however wife has just msg me saying they had an email at 1530 stating they still don't have an update or answer in whether they will be as a company seeking to claim the 80% allowance for their staff as no decision has been made and are yet to even sit down and discuss it as a company. So as of 5pm today all SD employees will no longer be required to work but are still employed by the company without being told if they will receive the money..

You'd think it will happen as its the right thing to do but the uncertainty isn't helping.

Only going by a few companies I know with similar staff models. Managers been given one months pay whilst discussions ongoing.

Other staff 2 weeks pay.

Anyone with a proper contract will in most likelihood be kept on atm. Better to pay them for a few weeks of no work than have to retrain all staff when the business opens again.

Of course if everywhere is closed for 6 months. They'll probably reevaluate that stance.

 

[Deleted member 16999]

I don't know the full facts here but a quick check shows Wetherspoons employs 37-38k people. Obviously many will be part time but that is still a heck of a lot of money going out when they will have not a penny coming in. Precious few companies can leak that much money and still survive. His comments may well have been made to encourage the govt scheme to kick into gear sooner rather than later, focus their minds.

Try finding the video of him telling his staff to basically go get another job, bit of a shocker, he’s a greedy horrible man.

 

[Deleted member 21258]

I don't know the full facts here but a quick check shows Wetherspoons employs 37-38k people. Obviously many will be part time but that is still a heck of a lot of money going out when they will have not a penny coming in. Precious few companies can leak that much money and still survive. His comments may well have been made to encourage the govt scheme to kick into gear sooner rather than later, focus their minds.

That's the thing, with 37000 employees, even if the average gross pay per month is £500(probably making up a figure to low per staff member), that equates to £18,500,000 per month with no income coming in(yeek). Not a lot of businesses have that kind of cash sitting around for any length of time and you will probably fine for these businesses the total of their other overheads is greater than wage costs. So they will be losing masses. Really need to look at the whole picture tbh.

At the moment the government portal is not live for reclaiming wages(software probably still being written) and if the experiences of the government guarantee loan setup that I have, is anything to go by, its a complete waste of time, banks are saying we dont really have details but yes we will be able to help but we want full security, pay agreement fees etc at moment. Many businesses are going to go bust.

So basically currently businesses can not access any monies. Customers aren't really paying now either.

No comment about companies involved above, but it is a massive problem for any business with staff. and fixed overheads.

 

[rudebhoy]

That's the thing, with 37000 employees, even if the average gross pay per month is £500(probably making up a figure to low per staff member), that equates to £18,500,000 per month with no income coming in(yeek). Not a lot of businesses have that kind of cash sitting around for any length of time and you will probably fine for these businesses the total of their other overheads is greater than wage costs. So they will be losing masses. Really need to look at the whole picture tbh.

At the moment the government portal is not live for reclaiming wages(software probably still being written) and if the experiences of the government guarantee loan setup that I have, is anything to go by, its a complete waste of time, banks are saying we dont really have details but yes we will be able to help but we want full security, pay agreement fees etc at moment. Many businesses are going to go bust.

So basically currently businesses can not access any monies. Customers aren't really paying now either.

No comment about companies involved above, but it is a massive problem for any business with staff. and fixed overheads.

Wetherspoons annual profit last year was £102m. It was £107m the year before. They can afford to take the hit knowing that the govt will repay them within weeks. And if they really don't have the cash (unlikely), any bank would be more than happy to lend them it knowing they have a cast iron guarantee.

 

[Bazzatron]

I sincerely hope people do remember.

There are some truly shocking companies out there right now who don't deserve to get through this.

Its the poor staff that have to tell customers they cant have a refund whilst the management sit on massive fat pay cheques not giving a toss about the long term damage this will have to the company!

Sports Direct has nothing I need, can see it helps those who don't want/can't pay the premium prices but I'll never go in there again.

Wetherspoons may be more difficult to avoid but he's an absolute arse.

 

[Papas1982]

Wetherspoons annual profit last year was £102m. It was £107m the year before. They can afford to take the hit knowing that the govt will repay them within weeks. And if they really don't have the cash (unlikely), any bank would be more than happy to lend them it knowing they have a cast iron guarantee.

The government are only offering grants though.
The money still needs to be paid back. Obviously we don't know their wage bill. But let's say its £20m a month. If they're closed for 5 months then that's a whole years profit wiped out. And that's not factoring in all their fixed costs.

His attitude is appalling, but most successful people get there by being ruthless. As was said above, they're a venue that will likely still have plenty of custom if and when they reopen. So he's probably not bothered what people think of him.

 

[Deleted member 21258]

Wetherspoons annual profit last year was £102m. It was £107m the year before. They can afford to take the hit knowing that the govt will repay them within weeks. And if they really don't have the cash (unlikely), any bank would be more than happy to lend them it knowing they have a cast iron guarantee.

Is that before tax, before dividends.

How much of the profit is tied up in stock, fixed assets, current assets(ie work in progress) ? Have you considered that ?

How much cash did they have at the balance sheet date ? (cant be bothered to do a credit search)

Even if they had £100 million that would not fund them for long, whilst paying wages upfront and paying out the other overheads.

As I posted not really interested in these particular companies, and no going to defend them or not, my post was general and trying to give some insight into the current problem.

I'm not going to get involved in keyboard bashing, as some people wont see what I posted before, as you haven't tbh.

Do you really know how banks are ? (the government are only saying 80% and banks want 100%, if its so simple can you tell me have to access the monies, as I need to know but it isn't happening and isn't just happy to give the happy, your post is not truth)

Its funny how everyone is an expert in finance and profits.

All the best in these testing times and note to myself to keep away from these kind of posts, as they aren't good for me.

 

[rudebhoy]

Is that before tax, before dividends.

How much of the profit is tied up in stock, fixed assets, current assets(ie work in progress) ? Have you considered that ?

How much cash did they have at the balance sheet date ? (cant be bothered to do a credit search)

Even if they had £100 million that would not fund them for long, whilst paying wages upfront and paying out the other overheads.

As I posted not really interested in these particular companies, and no going to defend them or not, my post was general and trying to give some insight into the current problem.

I'm not going to get involved in keyboard bashing, as some people wont see what I posted before, as you haven't tbh.

Do you really know how banks are ? (the government are only saying 80% and banks want 100%, if its so simple can you tell me have to access the monies, as I need to know but it isn't happening and isn't just happy to give the happy, your post is not truth)

Its funny how everyone is an expert in finance and profits.

All the best in these testing times and note to myself to keep away from these kind of posts, as they aren't good for me.

It's pretty simple. Govt have pledged to pay 80% of wages. If Wetherspoons don't have the cash to do that, they ask the banks to lend them the 80%. They then repay the banks the 80% when they get it from the govt. I accept there will be a little bit of interest to pay, but 2% per annum / divided by a month or so for the sake of argument is pretty small beer.

Haven't seen many other large companies taking the same approach as Wetherspoons, so assume the rest (many of who are far less profitable), are comfortable with the govt scheme.

 

[Lord Tyrion]

Banks will lend cash and charge interest on it. Interest on millions is pretty painful when it is not necessary. The govt money on offer is only if the banks wont lend it to you, as I understand it.

I'm not going to defend individual actions but Wetherspoons are a big employer and if he can help speed up the furlough process by pressuring that govt dept then all other businesses will benefit. The end of the month is close, payday soon and a lot of companies will be following the website closely for the scheme to start.

 

[Lord Tyrion]

It's pretty simple. Govt have pledged to pay 80% of wages. If Wetherspoons don't have the cash to do that, they ask the banks to lend them the 80%. They then repay the banks the 80% when they get it from the govt. I accept there will be a little bit of interest to pay, but 2% per annum / divided by a month or so for the sake of argument is pretty small beer.

Haven't seen many other large companies taking the same approach as Wetherspoons, so assume the rest (many of who are far less profitable), are comfortable with the govt scheme.

Some have asked people to take unpaid leave, use holiday allowance. Virgin was one from memory. We hear about Wetherspoons because he knows how to get publicity, most make these decisions and complaints without being heard.

Furlough is a massive policy, a real game changer, but it is not up and running yet.

 

[Deleted member 16999]

Some have asked people to take unpaid leave, use holiday allowance. Virgin was one from memory. We hear about Wetherspoons because he knows how to get publicity, most make these decisions and complaints without being heard.

Furlough is a massive policy, a real game changer, but it is not up and running yet.

I know nothing about running a business etc, but surely in these unprecedented times he could of put out a statement saying he intends to use the furlough for staff and is looking for answers from HMRC etc and in the short term, ie a fortnight/month he intends to cover/help with wages.

 

[Deleted member 21258]

It's pretty simple. Govt have pledged to pay 80% of wages. If Wetherspoons don't have the cash to do that, they ask the banks to lend them the 80%. They then repay the banks the 80% when they get it from the govt. I accept there will be a little bit of interest to pay, but 2% per annum / divided by a month or so for the sake of argument is pretty small beer.

Haven't seen many other large companies taking the same approach as Wetherspoons, so assume the rest (many of who are far less profitable), are comfortable with the govt scheme.

Missed a lot of what I posted and you are wrong in what you post above. Sadly you do not know their working capital requirements, you don't appear to understand how the scheme works either and can not update me on how to access the monies.

The banks are asking for 100% guarantees as posted before, it is that simple.

You are confusing the 80% around as well(its got nothing directly to do with wages, the loan scheme btw, so the 80% are not the same and the comparison you do above is not relevant to anything). What makes you believe it is at 2% per annum ?

Being honest I do not have the knowledge for massive sized companies any longer, as moved out of that market a number of years ago, hence why I posted generally(as mentioned twice) and my knowledge is with small to medium sized companies.

At this stage I will bow out, but would say if this goes on for 6-12 months, then the effect will be massive on life/death and businesses and would not be surprised if alot of businesses will not still be around, irrelevant of the wage scheme, just purely due to overheads and lack of trade. That is how serious this is for businesses.....

Have a read below over the loan scheme and then phone up a bank about their scheme (I know of three banks being approached within the last few days and all the banks replied the same, need security for 100%, plus arrangement fees as I posted about[this is different to interest btw] and the monies are not coming tomorrow for instance. this has been the case for small to medium sized business)):-

Support for businesses through the Coronavirus Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.

The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.

The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank.

There are 40 accredited lenders able to offer the scheme, including all the major banks.

Eligibility
You are eligible for the scheme if:

• your business is UK based, with turnover of no more than £45 million per year
• your business meets the other British Business Bank eligibility criteria

How to access the scheme
The scheme is now open for applications. All major banks are offering this scheme.

To apply, you should talk to your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. You can find out the latest on the best ways to contact them via their websites. Please note that branches may currently be shut down to enable social distancing.

The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website.

If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.

Support for larger firms through the COVID-19 Corporate Financing Facility
Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies.

This will support your company if it has been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities.

It will also support corporate finance markets overall and ease the supply of credit to all firms.

 

[sunshine]

It's pretty simple. Govt have pledged to pay 80% of wages. If Wetherspoons don't have the cash to do that, they ask the banks to lend them the 80%. They then repay the banks the 80% when they get it from the govt. I accept there will be a little bit of interest to pay, but 2% per annum / divided by a month or so for the sake of argument is pretty small beer.

Haven't seen many other large companies taking the same approach as Wetherspoons, so assume the rest (many of who are far less profitable), are comfortable with the govt scheme.

This post (and your previous ones) is properly clueless

 

[rudebhoy]

This post (and your previous ones) is properly clueless

Go on then, why is that, oh wise one?