RE: RNS19 Oct 2020 19:35
anon3 - An interesting programme, but rather muddled, and poorly explained in parts.
No smoking gun re the retailers, in fact it seems they were paying in full, with full VAT, unaware that some suppliers may have then been using a web of shell companies to execute a VAT fraud.
Flaw in the logic of this programme, is that it claims retailers are getting artificially low supply prices of garments through suppliers almost being forced into committing VAT fraud. But then it later says that suppliers are spending their VAT fraud loot on £100k cars and lavish lifestyles for themselves.
What the programme failed to point out, is that retailers can get lower prices by sourcing from abroad, and air freighting into the UK. Because labour in places like Bangladesh is a fraction of Leicester, at only about 50p per hour. Leicester is used because it's convenient & quick, not because it's cheap.
VAT fraud occurs in many industries. It's a rubbish system, full of holes. You cannot blame the end customer, who has paid in full, if a supplier improperly accounts for their own VAT, unbeknown to the customer. Therefore the whole basis of this programme seems spurious to me.
I'm starting to wonder if deliberate, or maybe subconscious bias is starting to play a part in the hounding of the Kamanis at BooHoo. After all, they've built a fantastically successful business, becoming billionaires, being British-Asians, and flash with their cash, maybe there's a bit of jealousy creeping into some of the reporting?
Look at the Telegraph article hounding Mahmud Kamani, and contrasting his enjoying a birthday party in Istanbul, with low paid machinists in Leicester manufacturing items for BOO's websites. Why should't he enjoy a birthday party for goodness sake? You can almost hear the envy (or worse) dripping from the pen of the low paid journalist writing that piece - which again contained nothing new.
Re-hashing articles about BOO is a good way to get page impressions, hence ad revenues online. So perhaps this story will just run & run, as desperate journalists try to seek page views?
As for short sellers - remember that they are deliberately trying to provoke fear & panic selling, in order to trigger a short term spike down in share price, for their personal financial gain. I respect short sellers that expose frauds like Globo or Quindell, but I have little time for those who attack good companies, in order to trigger a brief spike down in price, for their own quick bucks.
Sign In
Follow the stocks
