Member Info for KNIGELK

He will not bid? So why buy 29.9%? It doesn't really add up..

Nice to see another (!) new poster here... Large stores work for Harrods, John Lewis etc. Agree though the 4-5 floor stores are not the future and in many cases Debenhams should close or switch to smaller more modern stores. It's easier said than done though to close 30 odd massive stores and expect the landlords to find a replacement retailer.. many via a mixture of smaller retailers on each floor or office/student flats but each store will be different (location etc)

When has he stated clearly that he will be bidding for Debenhams please? IMO he probably will but I cannot recall him saying it in black and white. If so, you would expect a pre bid premium here...

Well done on at least coming up with some suggestions on cutting costs - although not sure were you got your figures from - rent is roughly £220 million p.a. - you might have mixed up the total lease liability over x years left for the lease periods. More costs are in the pipeline - an extra 1% on auto enrolment - living wage increases - Debenhams were not excluded from the business rates relief confirmed in the recent budget.
Agree perhaps more in middle management could be cut - perhaps a recruitment freeze - a pay freeze - discuss with the pension Trustees a temporary reduction in employer contributions - improve supplier margins - more to smaller stores (a long term objective) close larger stores - agree a finance restructuring - reduce the debt via D4E - look at capex - speed up online revenue growth via tie ups with other online retailers etc. Many many areas were further cuts may be possible - oh, and don't forget that rental issue too - another cost (not the only one!!!) to consider.. btw the sooner they resolve the rental issue the better - if they are allowed the time - mind you none of this will work if the retail sector continues to stagnate or decline - and Debenhams will then not be the only large retailer going to the wall..

It was you that made the snipe (first) by stating that some posters do not wish to discuss the property element enough ... my simple point was that it is ALL you post about - and my Sunday comment was a dig at posting before 7am at the weekend - why? Can't sleep about your non investment? pmsl

It's Sunday yet busy on here. It's not about downplaying the property angle - it's that it's the only subject you bang on about. Almost as if you overplay it... the issue is important but so is how the competitors are performing, other costs like auto enrolment increases and discussing options for the company. These issues get crowded out by the one trick subject which you are obsessed about 5-10 times per day. I might understand it if you had a financial interest here! Try to enjoy the day - I will.

HC - well I can't see why Debenhams would suddenly need to borrow an extra £200-£250 million and hit the £561 million ceiling? Even if - current worse case - the company made a small(ish) loss of £11 million this year - it does not translate to suddenly needing all this extra funding EXCEPT in the circumstances of closing 40-50 stores in very short order - either via a CVA or not.. Even if legit - I can't believe the lenders will allow a smaller company (portfolio wise) borrow such a large amount unless either the Denmark store(s) is sold or there is a rights issue/D4E at the same time. Who knows - as UU said earlier - maybe investors relation may help - but from experience they don't normally give anything away .. "we will update the entire market at the same time" is the standard response.. enjoy the weekend

Well the RNS is confusing. Perhaps the profits has fallen further to £20 million pa which has triggered revised terms and ability to borrow against the agreed limit? Also post christmas is probably the worse period of the year re any cash flow issues?
HC - let's be honest, if JPM had increased their holding you would have put a negative spin on it. It's usual to see large financial companies change their exposure ...
Debenhams Bath - fairly busy - one/two departments in sale bit not all floors. For a Friday the whole city was fairly quiet which surprised me. Did get a bargain in The North Face though ...

UU - no worries, it IS confusing. BTW I do wish to offer an apology to the thread - I have been too personal and passionate here - sorry for any offence.. I try to see all sides but perhaps get (too) annoyed too often when posters appear to only see the bull or bear view - the truth - with all shares - is that there will be bull points and bear points - although obviously we can argue with side has most of the points ..
Pearls - agree - also this amount will reduce year on year (if Debenhams survives) as the lease term decreases.. my point earlier to SV was that all retailers will have lease liabilities - of course Debenhams is a special case. However we must remember that salaries will probably be a similar cost to rent - then rates/depreciation/systems etc. probably add up to the same amount too - so although rent HAS to be tackled - all costs need to be cut (sadly) GLA

UU - fair comments - just one quick question - when did the company receive a £40 million from Li & Fung? Obviously there is now this agreement but i can't see within the RNS were it says the loan is from Li & Fung? (just certain of our current RCF lenders?) .. (before any one ask - not leaving home until 12pm - partner takes forever to get ready lol - i guess i am not the only guy with this issue)

Quick point about the constant posts re MA and SPD.. the possible bid prices discussed here are wishful thinking imho (speaking as a shareholder).. first point - he probably is mulling over whether to take part in a pending D4E - if it happens, will he accept dilution or want to maintain his 29.9% shareholding? Second point - he might wait for a CVA - perhaps (not considered here before) he might cherry pick some of the stores marked for closure to add to his SPD/HoF brand - he might simply consider adding the entire Debenhams portfolio might be too big a fish to shallow at this time. Final point - he might "hope" for administration and simply sit on his hands - he is in no rush to buy the company. Even if he decides March is the time to make a bid - his initial offer will probably only be at a small premium to the current share price - why make a stupid offer when he holds 29.9% already? Probably 5-6p imho (not saying it will be accepted)

Lease liabilities over EIGHTEEN years - so they don't all just materialise at the same time.. a bit like depreciation.. it's only a factor for the stores due to close - hence why you are right about a CVA solving - at least in part - this issue - via agreeing reduced rent - reduced liabilities. Mind you - as i KEEP saying - Debenhams is not unique. All retailers will have lease liabilities - probably not 18 years though.. off to Bath today - sunny and not a day to take off work to stay indoors - will update on whether the Debenhams store appears busy or not tonight..

Smartie2 - last point as my break is ending - seriously?? You never make a loss? You must be the only one then in the entire country! What if x share issues a sudden RNS with a profits warning? Shares drop 50% in minutes.. it does not recover? This will happen a few times per month... Debenhams is a good example! You must sit on some shares for quite a while then imo - to recover your unrealised losses.....

That's your opinion - interesting you only post here btw... lets be clear - how much do Debenhams need to survive? How much must they reduce the debt by to ensure the company continues to be a going concern? (plus funds for store closures).. imho we are talking between £200 million and £300 million... what is the market value here? Around £50 million - if this is correct (its open to debate) then post a D4E shareholders should end up with between 20% and 15% of the resulting equity .. that is NOT "noting".. and we will end up with a leaner stronger profitable company - this is obviously just my opinion from a bullish point of view

TBH I don't think we need a daily commentary of your trades/profits .. any one could post what they like on here - true or not - also (not a personal point) people don't usually update up on their losses !!!!
It appears you are an active trader but I personally don't think much has changed in the last week to warrant a new opinion of the company - either you are in or out - end of imho

Smartie2, Debenhams was a grade A/B share just a few years ago.. a FTSE 350 company... sad to see the decline... however buying a large cap company will not make you immune to risk .. look at PV - it was worth £400 million until the black hole in its accounts was found - the trick is to SPREAD your risk - my small holding here is just one of 5-10 shares in my SIPP - I am not posting on many of them atm as all the action is here.
As for the share price - it went up on the RNS ... it was initially well received.. the drop back is for two reasons imo 1) day traders taking their quick 20% profits and 2) digesting the implications of the RNS and likely dilution etc.
At least the lenders and company are talking to one another - trying to sort out a deal in the interest of all parties - I doubt the BoD want shareholder wipe out -- they will want to keep the company listed - indeed bondholders will want to see the company listed if they exchange for shares - the question is whether 3p offers value for new/current shareholders - and to be honest I don't pretend to have the answer GLA

Last point - the reason you get on my nerves (sorry) us that your posts are an one trick pony ..CVA CVA CVA! Perhaps you don't realise it but it's like a parrot repeating itself and quite negative imho. If you are worried about what will happen to your sector if Debenhams has a CVA - fine - were you not interested though when Mothercare/New Look had CVAs or the stores closing from post MA acquisition of HoF? All I am saying is that theres a bigger picture than what happens to 30-50 Debenhams stores. Mine you - the sooner this gets resolved one way or the other the better - especially for the employees.
DC2007 - sorry but when I speak to people, no one tells me they have stopped spending because of Brexit .. maybe in the pro remain London bubble but not out here in the sticks.

You didn't need to write a book!
As I also keep saying, Debenhams is not unique! Your sector (property) shouldn't be just worried about the future of Debenhams but John Lewis, M&S, Arcadia, New Look, SPD - the entire high street! That's my point - look elsewhere. Post elsewhere. Stop the focus on just Debenhams - the whole high street is at risk - don't you get it?

DC2007 - Debenhams isn't the first company to try internal measures to "improve/streamline " the supplier Chaim, systems etc. Not sure how much it cost bit a lot of time.
Tbh my spending has not changed due to Brexit. Record employment but static wages.. HoF struggling and BHS gone so although the company is not unique I would wager they have a fair number of loyal customers. We need as many chains as possible to survive - Amazon does enough as it is (rarely use them - maybe once they pay the same tax as everyone else). We can all agree the next 1-2 months will be interesting

Strange yesterday you sold 50%. Now you are short? Make your mind up