High Street woes continue as Clintons cards restructures and other business news
11th November 2019.
James Salmon, Operations Director.
Clinton Cards are restructuring; more pubs and bars are closing; UK’s credit outlook lowered; Confidence declines to a seven-year low; Britain’s billionaires take £16bn hit; Corporates persuaded to work with SMEs to improve Britain’s productivity and July rescues UK from recession.
Clintons to close one in five stores
Greetings card chain Clintons has told landlords that 66 out of 332 sites have been earmarked for closure, while it will attempt to negotiate cheaper rent on more than 200 of the remainder.
Clintons also hopes to renegotiate key supplier contracts and creditors, including suppliers, are expected to vote on the proposals early next month.
Restructuring documents seen by the Sunday Telegraph said: “Approximately 90 of the company’s stores are currently loss-making with the business forecasting that sales will continue to decline.”
A Clintons spokesman said: “Discussions are continuing with our landlords but no decisions have been made.”
Clintons closures could hit retail landlords
Heavyweight retail landlords could be hit hard if greeting cards retailer Clintons secures rent reductions and even closes shops.
Property companies that stand to be affected include Intu and British Land, which respectively let 16 and 15 shops to Clintons, though others include NewRiver, Hammerson and Landsec, which have seven, six and five Clintons stores.
As part of CVA restructuring, Clintons, which is owned by US retail investors the Weiss family, wants to secure rent cuts and shut 66 of its 332 sites.
Accounts overdue at Clintons
The annual accounts of Clintons have been delayed as the greetings card chain seeks approval from landlords for a restructuring and closure of stores. KPMG is supporting the company through the CVA process.
More pubs and bars closing
Rising costs, changing drinking habits and a weak pound have led to a 13% rise in insolvencies of pubs and bars in the year to the end of September, according to UHY Hacker Young.
Partner Peter Kubik said a crucial problem for smaller bars and pubs is lack of access to the capital needed to adapt. “Hopefully, once the Brexit question is cleared up, high street lenders will be less nervous about lending to smaller pub companies,” he said.
Business rates reform must be top priority
The retailers’ trade association has warned that reform of the business rates system must be at the top of a new government’s list of priorities if the UK’s high streets are to be saved.
The “unfair” tax means shops pay a quarter of all business rates, even though they make up just 5% of the economy, the British Retail Consortium (BRC) said.
The annual £7bn bill has risen ahead of the rate of inflation since the tax was introduced 30 years ago.
It is one of the highest property taxes in the developed world.
“As political parties draw up their manifestos in the coming weeks, they should spare a thought for their local retailers, the three million voters they employ, and the billions in tax they contribute,” commented a BRC spokesperson.
Research by PwC and the Local Data Company found as many as 16 shops per day closed in the first half of this year.
Moody’s lowers UK credit outlook to negative on Brexit ‘paralysis’
Moody’s has lowered the UK’s credit outlook to negative, arguing that the gridlock over Brexit had diminished the UK’s institutional framework.
“It would be optimistic to assume that the previously cohesive, predictable approach to legislation and policymaking in the UK will return once Brexit is no longer a contentious issue, however that is achieved,” the ratings agency said.
Confidence declines to a seven-year low
An optimism index by BDO fell by 0.67 points last month to 95.59, its weakest since March 2012 and close to the 95 level that signals zero growth.
The report, compiled by the Centre for Economics and Business Research, said the decline was because of a drop in manufacturing optimism, which fell by 3.38 points in October, and to a lesser degree by the key services sector, which fell by 0.34 points.
Peter Hemington, a partner at BDO, said that the last time business confidence was so low “was when the country was staggering out of the doldrums caused by the global financial crisis … With an unpredictable general election looming, continued political volatility in the UK remains a key driver of falling optimism.”
Britain’s billionaires take £16bn hit
A report from UBS and PwC reveals Britain’s 54 billionaires have seen more than £16bn wiped off their fortune, after a strong dollar and volatile stock markets caused the wealth of the world’s richest people to shrink for the first time in five years.
The report shows the fortunes of the world’s richest 2,101 people dropped by more than £300bn, or 4%, to £6.6trn in 2018 as the number of billionaires fell by 57.
Josef Stadler, head of the ultra-high net worth unit at UBS, defended billionaires, saying they outperform other corporate leaders and that the media is bias against them.
Corporates persuaded to work with SMEs to improve Britain’s productivity
A project run by government-funded productivity programme Be the Business hopes to sign up 100 large corporates to a scheme designed to boost the output of Britain’s workforce.
Large companies including Amazon, Google, BAE Systems and Rolls-Royce will promise to boost the UK’s productivity by encouraging greater adoption of tech skills among their suppliers and offering mentoring programmes for managers.
Sir Charlie Mayfield, chairman of the retailer John Lewis and Be the Business, said: “Years of political uncertainty cannot be allowed to stall the economic growth we’re seeing across the country. While the government has an important role to play in improving productivity, it can’t be done by government for business. We can’t outsource it. Businesses really need to step up.”
July rescues UK from recession
The Office for National Statistics is expected to say on Monday that third quarter GDP grew by 0.4% dispelling fears Britain was about to sink into recession for the first time since 2008.
Howard Archer, chief economic adviser to the EY ITEM Club, said: “The UK economy likely returned to clear growth in the third quarter […] However this will overstate the underlying strength of the economy and was highly dependent on a spike in activity in July. Activity eased back in August and the economy seemed to have a difficult September, thereby carrying little momentum into the fourth quarter.”
On Tuesday, the ONS is expected to say the jobs market is slowing, with the number in work falling by 90,000 over the three months to the end of September; but the unemployment rate is expected to stay at 3.9%.
Figures out today are expected to show 0.4% growth in GDP in the UK between July and September following a 0.2% slump in the previous quarter.
The services sector is set to be the main driver of growth but experts predict a slowdown in the final quarter of the year to 0.2% growth – meaning 1.3% for the year overall – the weakest since 2009.
Do you sell on credit to retailers like Clinton Cards?
With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers such as Clinton Cards and watch carefully for any late payments.
Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.
You can’t just assume your customers can and will pay you eventually, no matter how big their name is.
It is essential to have credit management systems in place to monitor and check your customers credit worthiness.
It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply on credit, help us help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When your customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers.
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You might be hesitant about contacting a debt collection agency. What are they going to be like?
Can they help your particular type of business?
There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.
Debt collection agencies are not all alike.
Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!
At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.
The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.
We are polite, firm and efficient when it comes to recovering outstanding debt.
“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire
“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Yes, CPA can help you boost your business cash-flow.
Don’t let your bankers control you, contact CPA today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you realise you could be sitting on a fortune?
Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.
If you sold B2B on credit then there may be a hidden source of capital you can call on.
If you fancy an bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.
Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.
We can help you uncover the pile of gold, you didn’t even know you were sitting on.
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.
Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.
You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.
That compensation could provide the cash boost your business needed.
But don’t delay, that compensation evaporates if not claimed within six years of the late payment.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.
Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.
CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.
The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
Those former clients who regularly paid you late can finally be made to pay.
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections