Tag Archives: bankrupt businesses

clothes businesses closing

26 Apr

london 11.10am 8.5C sunny clouds. tuesday 2016

news of the bhs(british home stores) chain going bankrupt is in all the newspapers this morning. the name itself is so old fashioned. 

 i saw a small lead in the twitter news from my newsfeed that austin reed has gone into administration. it is a financial Times link which i could not read as they have a paywall. i am in the library and actually have today’s copy of the FT in front of me, but of course the news is so new , it does not appear in the print edition.

anyway i found a guardian article about it.  these are clothes businesses. cant say i know much of austin reed. and they are going bankrupt.

well, the shareholders (found out they are owned by venture capitalists), and the shopworkers thrown out of work, in those businesses will lose of course. but wont affect ordinary people very much..  in fact the fact that they are closing suggests that there are not many customers shopping there in the first place.or perhaps not… it might have a lot of customers and still be made to close. (i wonder whether austin reed owns the leasehold of their regent st shops; it had two, the first one across the street … it was sold in 2011 to superdry,  there must be some money , perhaps a lot of money! to be made out of that).

it makes me think about the dynamics of capitalism. some people go into business to asset strip it. i am not suggesting it is the case with these two of course. i am speaking generally, in that it is one of the reasons for buying a business. 

the other reason is that it is money investing in businesses that provides , (sell ) goods and services and incidentally provide the employment of people; and make a good profit doing so. and there are plenty of that in london, and uk in general, ( the bankruptcies are just part and parcel of the business dynamics) so that generally uk  draws in more people willing to invest more money in it, and that gives more employment and so the cycle flourishes.

i read a blogger in pakistan, where he says there is no work to be had where he lives, and any that is around depands on favours and contacts . there is a shortage of work opportunities because the economy is stagnant. in the past he tried to go to the middle east to find work, but was unlucky and was unable to  keep the job and had to come back.

places with vibrant job openings are drawing in loads of job seekers from other countries, and that may well be the reason why uk is so attractive to migrants. there are jobs here for them. and now with the increased minimum wage rate it is even more attractive to the world. the uk will welcome such people really, and by leaving the EU, it will open up such openings to the world, rather than just europeans and the migrants ramming its gates to enter now. it is the controlled entry  of such immigrants and workers that is the crucial factor. 

Digital StillCamera

Digital StillCamera

here is another viewpoint about the bhs collapse. its author is my mp, mark field. he is the mp for westminster and city of london.