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https://www.birminghammail.co.uk/news/midlands-news/birmingham-philpotts-fined-35k-after-13157211
PV Coffee tastes terrible and the cakes are just a fluff and air . PhilPotts is a half decent place though . Decent sandwiches/ salads / soups / hot counter . Coffee is better than Starbucks too. I can see an offer for PP coming in , PV shops will just close .
We have regulators that enable Ponzi scheme in this country, once a company goes public then it should not be able to hide anything. Execs use borrowing and long dated bonds to overpay themselves.......they should all get paid via cash profit. I don’t believe the lies just force those execs to pay.......I hope Barclays and Lloyd’s shorted the stock since they knew it was Ponzi all along. Banks and auditors have upper hand when it comes to shorting a stock!
FRC must force companies to allow independent shareholders (pension fund / income fund) to appoint an external auditor (not for profit / NAO type) who would go through a company’s book like a sniffer dog.
The two secret overdrafts which had been drawn down by £9.7m clearly ended up being their downfall.
HSBC and Barclays must have ended up demanding repayment of the £9.7m of that overdraft debt.
Stunning ....shocking for private investors and staff
It will no doubt return with new owners who will want it cheap given that they will no doubt have to pump money into it
Luke Johnson must be due a knighthood soon.
Who was on Ian King Live this lunchtime?
pi's fleeced
Looks like it - unless the KPMG Administrators receive such a big cash offer for the business to repay a) their fees b)secured creditors c) bank overdrafts and fees d) unsecured creditors e) wages and PAYE etc and if any left over cash it comes to the shareholders!
I would imagine Mr Johnson’s PE firm will buy it out if it such a good business. I don’t know as I have only been in a couple of their cafes in Covent Garden and Glasgow (both were full with good service and good coffee).
I think Luke Johnson's problems are far from over if the IPO was based on fraudulent figures.
Atleast staff will get paid for now.
The cake company had a soggy bottom! I wouldnt loan millions to a fraudalent biz, would you?
Nothing for shareholders but plenty for Luke Johnson if he buys the best bits back from the administrators. Small shareholders never count for anything in these situations.
Wipeout?
excoriating interview piece on ian king live on sky at lunchtime.beggars belief!
Share Options under their LTIP scheme all sold by the Execs. Plus the company admitted they had not disclosed the correct share amounts or accounted for them properly in an RNS after the Suspension!! Wow, but also...mention of further law suits regarding the purchase of a dental business (IDH) from AIM after a recent IPO and subsequent sale at a big profit. The Movie Rights might be worth something here!!
That is a good point Bob. I was wandering round central London a couple of months ago, and in certain places PV looked properly at home while Costa looked little better than McDs. But I have also seen tatty looking PVs in Debenhams and, as you say, less affluent areas. Even so, if they survive I doubt we will ever see one on West Brom highstreet!
I do remember being a bit surprised to see Pat Vals springing up in ordinary high street.s everywhere. High end teashops are normally in upscale affluent locations.
Having said that the Basingstoke one was always busy.
John,
Good point regarding Costa. To be honest I did not make the comparison. So you might have a point regarding PV being a niche brand in the mid to upscale sector of the market. First mover advantage and all that.
Hi dj
How do explain the success of Costa, or do you think that they managed economies of scale before competitors manages to catch up?
Having been to both PV and Costa (and Starbucks for that matter) I know which I prefer. Go to a Costa now and its scruffy and dirty with the Baritas banging out mediocre drinks in barely more time than it takes to make a Nescafe.
I do think that there is a viable, profitable, slightly up market chain possible from this debris. I don't however expect to see this relisted now.
There is no money to be made here. This business has no USP. Labour intensive, high rents, business rates , living wage, plus competition from people making their own cakes at home and Tesco , Morrison etc.
Too many downside risks.
That is true. How can they get away with it is beyond me.
I have seen better regulated markets in frontier markets - third world markets.
Anyway as some one said earlier this week - there is no money to be made in CAKES. High rent, business rates, labour intensive plus one can make cheap homemade cakes or pick up a good one from Tesco or Morrison. This business was based on lies.
In fairness most of the people reading and posting on these boards are financially aware and would indeed form a good jury (unless of course they had PV shares!). I think a random cross section from the population would struggle, especially when accounting practices and terminology are used
I'm sure any jury would understand this. it's not complicated at all. That's why it just seems so stupid. How could they ever get away it ?
Johnpwh,
I was talking about Dominic Chappell......if he had his way he could have floated BHS on AIM and sucked in private investors money. Most of the businesses on AIM and even on FTSE All share are worthless and shouldn’t be listed. They need to issue secured bonds instead of listing, private investors are being used as the bag holders since interest rate is so low. My advice is screw the market for a while till the regulators clamp down on them.
All execs sold all the shares they got via options / awards. That’s a sign to figure out the next CAKE........Chris marsh had a funny option which was a warning itself .....666,666 shares (666) sold it all for 100% profit instantly.