Just reading this the warehousing and distribution mentioned to be sold to raise funds for the purchase. I guess ASDA is all in house at the moment with no Wincanton, DHL or the like?
On first read I took it to mean it would all be outsourced when the facilities are sold off, or would it just be the real estate sold and leased back??
As far as I am aware it is a sell for capital/lease back on the land and warehouses only. Everything being released so far has been about keeping in house where it is in house at the moment (Donny for instance is a Wincanton site). Only thing possibly going (apart from the petrol stations, which we all knew would get swallowed) is George clothing, for some reason they really dont want that bit of the business.
As ever, no one will really know until it happens.
BBC News Business section did a good breakdown of how they’re buying a £6Bn company with only £700m. Leveraged up to the eyeballs and it’s not just the warehousing that’s getting sold, it’s some of their other business such as the EG forecourts which include those services on the M61 the brothers own. I’d be concerned.
They’ll be paying very low interest on whatwer they’re borrowing. I can’t see interest rates going up by much any time soon and in that time you’d like to think that a safe as houses company (ie food) will continue to make enough to pay down their exposure over the longer term.
Prosper or fail. If they fail it won’t affect them too much. If you owe the bank £10000 you have a problem, if you owe the bank £1 billion then the bank have a problem.
Does anyone actually buy clothes from Asda , I wouldn’t be seen dead wearing the crap they sell , food isn’t any better , awful place
I can see the sense for EG to diversify from filling stations, not sure how much of a role they will have in 30 years time.
I wonder if the discount supermarket fuel model will go out of the window for the asda sites, I never associate EG with cheap fuel, I think Cherwell is 149 a litre atm…
toonsy:
They’ll be paying very low interest on whatwer they’re borrowing. I can’t see interest rates going up by much any time soon and in that time you’d like to think that a safe as houses company (ie food) will continue to make enough to pay down their exposure over the longer term.
Sure about that? Stobarts borrowed £55m at an APR of 18% less than 2 years ago.
dozy:
Does anyone actually buy clothes from Asda , I wouldn’t be seen dead wearing the crap they sell , food isn’t any better , awful place
asda grantham…great store
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njl:
I wonder if the discount supermarket fuel model will go out of the window for the asda sites
I suspect part of the reason for ASDA and Tesco cheap fuel is to get you to the store. They could easily have made it just below the surrounding stations, but most seem to be significantly below.
I know plenty of people who’ll go specifically to the local ASDA 10 miles away as its so much cheaper, then of course go shopping there. It could hurt the store if they bumped the prices up.
As for Dozy not shopping there - if he’s working those daft hours he can no doubt afford Waitrose and Next for everything. Rest of us with a life will buy decent clothes and food from Asda.
dozy:
Does anyone actually buy clothes from Asda , I wouldn’t be seen dead wearing the crap they sell , food isn’t any better , awful place
Why dozy, dont they sell your favourite tracksuits and baseball caps?
With that level of borrowing the only thing I’d be concerned about is the pension scheme, if you’re in it. Royal Mail pensions took big hit when they sold it off many moons ago (drop of 25-30% on final salary numbers for some).
Although Asda is a bloody awful place to shop, and what makes their bosses think that having that cross-eyed moron in the adverts makes them more attractive than the competition??
dozy:
Does anyone actually buy clothes from Asda , I wouldn’t be seen dead wearing the crap they sell , food isn’t any better , awful place
Yes I do actually…
Conor:
toonsy:
They’ll be paying very low interest on whatwer they’re borrowing. I can’t see interest rates going up by much any time soon and in that time you’d like to think that a safe as houses company (ie food) will continue to make enough to pay down their exposure over the longer term.Sure about that? Stobarts borrowed £55m at an APR of 18% less than 2 years ago.
Weren’t Stobarts very publicly in the “we need money or we fold” category?
Don’t get me wrong it won’t be peanuts in interest as its a large amount of debt, but I’d bet being secured against future revenue of a currently profitable business would see them get a better rate than a company that was about to fold.
Went into the EG station on the A5 before Cannock.The shop is being turned into an Asda.They are ditching Spar and using Asda in most of the EG forecourts.
dozy:
Does anyone actually buy clothes from Asda , I wouldn’t be seen dead wearing the crap they sell , food isn’t any better , awful place
I am all about Asda shopping for food now. When tesco started charging more for some stuff if you don’t have a clubcard, I decided to go elsewhere.
If it goes belly up the bank suffers
DAF95XF:
dozy:
Does anyone actually buy clothes from Asda , I wouldn’t be seen dead wearing the crap they sell , food isn’t any better , awful placeYes I do actually…
most of my t-shirts have georges name on them
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toonsy:
Weren’t Stobarts very publicly in the “we need money or we fold” category?
Yep.
The pandemic really helped them out. Massive need for trucks and storage due to lockdowns.
Im not happy about this takeover.
They will sell everything off they can.
No doubt will tupe over aload of workers as well to some onsite agency.
James.908:
DAF95XF:
dozy:
Does anyone actually buy clothes from Asda , I wouldn’t be seen dead wearing the crap they sell , food isn’t any better , awful placeYes I do actually…
most of my t-shirts have georges name on them
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As do my jeans, hoodies etc 