Money, investing, mutuals etc
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BeautifulSunshine
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by BeautifulSunshine » Sat Jun 27 2020 4:31pm
blythburgh wrote: ↑Sat Jun 27 2020 10:01am
I heard that just over 50% of their rental income went on paying the interest on their debt. They grew too big far too fast and now the employees are paying the price
The core issue is the rise in online shopping, already a significant trend, and with Covid-19 it finished Intu off.
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pabenny
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by pabenny » Sat Jun 27 2020 4:43pm
Weell
Unlike businesses that cease trading - like Thomas Cook, the shopping centres won't disappear. Which means that most employees will retain their jobs - TUPE* means that all employees transfer to the new owner(s) on substantially the same terms.
It's entirely credible that over half the rental income went on funding the debt that was used to buy the malls. It's exactly the same business model as buy-to-let landlords where the rental income covers the interest.
As Mr Thunder says, the continuing growth of online shopping compounded by lockdown has meant more empty units, more unpaid rent, more tenants demanding rent reductions. Intu have more destination malls - such as the Trafford Centre which will have shielded them to some extent. But they perhaps weren't diversified - they were entirely exposed to retail property.
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* completely off topic - this important piece of legislation to protect employees originated with the EU in the 1980s.
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BeautifulSunshine
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by BeautifulSunshine » Wed Jul 01 2020 3:01pm
Covid-19 is really starting to bite.
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pakefield
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by pakefield » Thu Jul 02 2020 10:28am
Please come to Lowestoft. It will stop people having to go to Norwich to shop there and give people a reason to shop locally.
Not enough to get us heading north instead of south or west but would be very popular with a lot of locals
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BeautifulSunshine
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by BeautifulSunshine » Thu Jul 02 2020 1:01pm
There's always one who is not like any other.
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Chadwick
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by Chadwick » Thu Jul 02 2020 5:52pm
The owner of High Street restaurant chains Café Rouge and Bella Italia has gone into administration.
Ninety one Casual Dining Group outlets will close immediately, and 1,900 of the firm's 6,000 staff will lose their jobs. Casual Dining Group, which also owns the Las Iguanas chain, said it hoped a new owner could save the firm.
Administrators Alix Partners are seeking offers for all or parts of the remaining business.
https://www.bbc.co.uk/news/business-53270679
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