Member Info for alex1621

I believe DLG is worth more than 250p even with the existing management, because there is massive scope for savings. If DLG is combined with Aviva the synergies are much greater. So I expect a slightly better offer and I’d be hacked off if the Board did not take it seriously. Hopefully institutions will apply pressure on the Board.

It's not failing, just badly managed in recent years. So there is plenty of synergies to be had by combining both companies. Ageas saw it also, but didn't want to go hostile.

The Times are reporting that Aviva are still interested in a deal, so I would expect another bid in December. If DLG are concerned with shareholders they will accept.

I'd accept that deal. I'm afraid Adam Winslow hasn't shown enough for me. If Aviva comes in with a slighter higher offer it will be hard for the Board to say no.

Any sniff of a takeover would send the SP northwards, but any initial offer would be lucky to top 40p. With competition more. The one thing that would really make a difference would be a positive change in the trading performance. For me that is the key to unlocking value.

I think 2025 has the potential for a recovery or some M&A activity. Quite a lot going on in the sector. Trump tariffs, possibly some regulation to take away the de minimus tax advantage and of course the IPO of Shein. That could result in a bid, and Boohoo is an obvious target for them, with a plug and play infrastructure and supply chain. Shein will have to adapt their business model if they get hit with regulatory changes, and a relatively inexpensive takeover could be the result.

I believe the non-executive offer comes with too many strings attached for Ashley. His concern is assets being sold off on the cheap - and not to him!

If he made a decent offer for the rest of the shares I’m sure he could make Debenhams a successful bricks and clicks operation, like Next. There is a lot he could do with Karen Millen and he has the option of developing or selling off remaining brands. Would be better if he had some competition.

My guess was that Umar came back to pick up PLT … on the cheap. I don’t think it was Debenhams on the chopping block. The speculation that he was returning to become CEO was wide of the mark. The Debenhams guy took that position, an indication that Debenhams was not one of the assets earmarked for sale.

I don’t think it is true about Kamani signing indemnities on related party transactions? He has restricted himself from buying, not related parties. I think he has stated he would not be involved in any negotiations … which is no guarantee of anything in my view.

Umar Kamani is on Twitter offering to grant #PrettyLittleWishes.

We should all go on and ask him to manage the business profitably.

The trading trend is poor, but I’m not convinced that a turnaround in fortunes is not impossible, so I’d like to see how 2025 pans out. With Trump in the WH and the focus on China tariffs we could see competitive advantages erode. The Debenhams business is certainly one to watch, and its growth is well ahead of analyst expectations.

If I see this I’d expect the SP to move very quickly, and if it looked sustainable I would not be in a hurry to exit. Positive news that looks sustainable would be transforming.

I just checked. That is the Boohoo letter.

Hexam - yes, they still have to halt the slide in sales and right size the business to get the operational costs to a level that generates good cash flow and a decent margin.Even though they have made a monumental mess of running the business I still think that is an achievable goal. As I have said a few times I don’t think that Shein will have it all their own way forever. I can’t see de minimis advantage surviving and Trump will target Chinese companies with tariffs.

SCB - I wasn’t suggesting that they sell Debenhams, I was merely illustrating that the company genuinely has undervalued assets. So the CVS scenario talked about below is nowhere near close. Could just as easily used Karen Millen or PLT as examples. I read another analyst who thought Karen Millen was worth £300m on its own.

An analyst recently suggested that Debenhams alone was worth more than the current market capitalisation. Sell Debenhams, clear the debts, and then you have the choice of a turnaround or a sale of the rest. A CVA simply isn't necessary, and we are nowhere near that scenario. When you look at the accounts you have to factor in the costs of exiting the DC, redundancies and a host of other mistakes that have wasted resources. You can't forecast that into the future, the hit has already been taken. So operational costs should be lighter going forward.

I don’t think it is as easy as people think for Ashley to pull a fast one. For one, he has a Board to answer to. And the Kamani family are still large % shareholders, they will not allow liberties to be taken by Ashley. If he gets the vote it will be because of retail shareholders. With that comes obligations to those that backed him.

I think Kamani is better for us all as a powerful shareholder on the sidelines, as opposed to the driving force of the business. I don’t think the return of Umar was coincidental to the strategic review and talk about offloading assets. I sensed a Board rubber stamped stitch up.

That is what he should do.

I’m being a bit cynical here, but I believe Umar only came back to pick up Pretty Little Thing on the cheap, and no other reason. Although Kamani has pledged not to bid for the company or individual brands, that doesn’t exclude his son. He has stepped down as Chair and pledged to keep an arms length from any related party bid … and I think that is referring to his son.

I'm not going to criticise anyone who doesn't trust Ashley, but I would say the same note of caution can be easily applied to Kamani. He has shown no interest in shareholders, when I've seen him at trading updates he can hardly be bothered to look up from his phone. He built a great business but hubris got him in the end.

The only positive that I can take out of this is that Ashley would not have a free rein to do anything he wants, he will have to answer to a Board and he also has family of major shareholders looking over his shoulder if he tries to pull a fast one. To some extent, they both keep each other honest.

So perhaps we might be able to salvage something positive from this situation no matter how the votes go?

I think Ashley could do very well with Debenhams, perhaps a smaller format than the traditional stores but with a focus on perfume, cosmetics and skin care - that was always the busy area and a big money spinner. Karen Millen could have concession contracts with Frasers stores. I think they would do very well there and it would be a test bed to see if a retail format on the high street would work.

If he doesn't get the vote over the line then perhaps a bid will be considered. The growth trajectory of Debenhams alone is pretty impressive.

People on here talk about phone calls they've received ... but no one ever says anything about what was said? Anyone care to elaborate?

I believed that the current management would pull through and get the company back on track. Let's be honest, the success during the pandemic seemed to go to their collective heads. They had a pile of cash and went on a spending spree, forgetting that there would be a time when retail got back to normal. All of that money has been frittered away on vanity projects and logistical operations that have had to be scrapped. Worse than that they have got into debt in the process.

But the end for me came with the salaries and bonus package, the "reward" for all the hard work that had been put in? Add to that the scrapping of the US DC because they discovered it can be can be done just as well from here, with a wider range available?

For Ashley to get on board he needs the support of existing retail investors. I don't think he will take that support lightly, and he will have a very large shareholder in the Kamani's looking at everything he does. My thought is that neither are completely trustworthy on their own, but in this situation they force each other to behave above board and in the interests of all shareholders.