Member Info for Franalex

It is now clear that the rubbish being spouted by some individuals over the past month, as some of us identified, had absolutely no substance. I think Pearls to name one should read some of the stuff he has been posting, and reflect, before posting to other boards. We saw exactly the same comments as before Afren and Carillion and there is always a risk that it influences the inexperienced and some opinions are stated as facts.

You are right, just pandering to the sensitivities of those who for weeks have been of the view that there will some white knight or Ashley paying 20p plus and comments that administration is impossible. In theory there could be a payout if every other creditor was paid in full but as likely as every MP agreeing to a single solution to Brexit.

If there is a pre-pack, it is very unlikely there will be anything for shareholders, Ashley will not be buying the equity of the business. Additionally, in any distribution, ordinary shareholders rank last. Holders of debt or other security are not likely to agree to any haircut if equity holders get anything.

Lifesagame, we beg to differ. I have bought two businesses via a pre-pack and this dealt with everything through this process and never contemplated a following CVA. Not saying you are wrong but my experience is different.

Very unlikely to be a pre-pack and then a CVA. The pre-pack terms would allow the leases to be re-negotiated, equally most supply agreements have insolvency clauses in them allowing supplier to exit or renegotiate in the event of an insolvency event which includes both pre-pack and CVA. As someone said earlier the real winners out of this will be lawyers and IPs who both charge staggering hourly rates and are at the front of the queue for payments.

Anyone with experience who bought new shares or topped up over the past 4 weeks have only themselves to blame for any losses as there have been warnings from people with actual transactional experience during this time, many of which were dismissed by individuals posting some truly ridiculous opinions. I just hope that some new inexperienced investors were not seduced into buying shares by these strongly held views suggesting a get rich quick opportunity.

You can plan for a pre-pack several weeks in advance. They just do not happen overnight. You just have to consult with an IP throughout the time to ensure you can justify any payments made during the period.

New RNS

I think you are making the same mistake as others have for weeks over the responsibilities of directors. If the Board have a cash flow forecast going out over several months that shows that the business is unable to meet liabilities as they fall due, then their fiduciary duty is to act in the best interest of the creditors rather than the shareholders. There is usually a grey area for a period of time in which case they will have taken guidance from an IP. In addition no amount of sales guarantee that the business can trade cash positively, it is merely a vanity figure. You may not agree with the rules but they are fairly clear.

I agree with you but as in a recent post, I do know of one individual who lost a lot of money because they believed the hype on one of these boards about a massive share bounce back. You can argue they should have done more research or only have invested what they could afford to lose but they bought the “get rich quick opportunity” that someone was putting forward and I believe we have seen similar here.

Not denying their right to an opinion but as I said at the time, I was concerned that they may have been influencing inexperienced individuals by posting opinions that even at the time were totally unrealistic. It was the same sort of rhetoric that was in posts prior to Interserve, Carillion, Afren etc, predictions of huge upward movements that were never going to happen.

Slightly more realistic than some of your absurd posts over the last month which you may want to reflect on, but probably still over optimistic. Not so long since you were predicting £100m cash and £200m -£300m shares to get the equity.

If you read his post last week he said he would eat his hat if price not at 4 or 5p this week.

Possibly, but on Friday it was a 90% chance of a bid over 5p and he will be eating his hat if price not at 4 or 5p this week. Hope he is right but somehow think not.

On Sunday you said you were predicting a price of 7p.

You have been predicting this for weeks at a variety of absurd prices. What is your current bet, have you given up on a figure above 20p.

It was a highly caveated offer that may or may not materialise. Individuals have been talking this up for weeks and all have proved wrong to date and certainly some of the more outlandish price suggestions and timescales have been ridiculous. It remains, as it has been for the last month a gamble not an investment.

Executive pay needs reducing now. It has continued to rise as shareholder value has been destroyed over many years. As a long term holder, it is further evidence that the Board have no idea on how halt the flow of problems. Too little specific sector experience within the Executive team. Really needs some of the Institutions to force some major change on the business.

Take it you have never been into one of his Flannels stores then? T-shirts at c£350 (yes three hundred and fifty) and shoes between £500 & £1,000. You can buy a lot in Poundland for that.

Their obligation to act in the best interest of shareholder exists only to the point when the solvency of the business is an issue. If their cash flow forecasts looking out several months, indicate they can not meet liabilities as they fall due then they are the under a duty to act in the best interest of creditors. We have no visibility on these cash flows.