whoof wrote:pete75 wrote:whoof wrote:Any retailer with a business model that depends on size, high turn-over and relatively low margins is only on the brink of profit at the best of times.
Chances are someone will buy some of the chain but many will go, but not outdoors.
Used to visit and buy a few things, mainly walking stuff about every other year.
Yep - that'll be why Karl Albrect Jr, inheritor of Aldi Sud and his cousin Theo Albrect Jr, inheritor of Aldo Nord are the richest and fifth richest people in Germany and Michel Leclercq owner of Decathlon is among the wealthiest people in France.
When it works it works when it goes wrong it quickly unravels. I saw a program about a woman. She had £20,000 and was thinking of buying a,second house. Then realised she could buy four and rented them out, they went up in value so she remortgaged and used the cash to buy some more houses. Kept repeating add until she had about 30. Then there was a slump and a couple of her tenants couldn't pay their rent. So she couldn't pay the mortgage plus she had a couple of houses she was doing up to rent but she could pay the builders they stopped work and demanded payment. Within six months all the properties were repossessed and she was bankrupt. A few years later she did the same again but cashed in before the next crash and made millions.
What she did to make millions was exactly the same as to go bankrupt. The only difference was the economic situation totally beyond her control. Go Outdoors were bought for £100 million four years ago if they weren't in great shape before this current downturn then their business model is enough to finish them.
Aldi seem to have weathered many slumps and booms in the 74 years since it was founded. The trial sand tribulations of an amateur propert developer bears little relationship to a business like that.