Poundworld sold … for a pound… is that ironic or do I not get irony?
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And it probably comes with a multimillion pound debt to service and a black hole of a pension fund to manage.
Probably not the bargain you’d think it is…ironically.
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Not seen the announcement but very much doubt the pension scheme or existing debts have gone across to a new owner. They will be obliged to take on all employees (for branches they are buying) and they are obliged to honour continuous service liabilities. They will also probably take over the lease and other property costs for the same branches. Thats why it might only be worth a nominal sum.
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Tbf on their business model they will have only done the minimum for staff, so a stakeholder pension is something I bet the co only offered (apart from executives benefits obvs) and easy to walk away from.
Likewise you’re right about debts, but not convinced the assets are going to give a great return in the short to mid & definitely not in the long term. Mind you I’m not an insolvency practitioner.
Just seems an easy way to offload debts with no liabilities to the failed owners.
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Thats how insolvency works though mate. At its simplest level, if a cake shop has assets worth £10k and debts of £100k (because the previous owners were idiots and lost a shitload of their savings running it badly), no one will buy it if they have to take on all debts. First, because it’s worthless and second because it’s instantly insolvent again.
There is legislation to protect employees earnings and benefits and length of service which is why these are mandatory.
Dontcha just love Capitalism though?
At the other extreme of your example isn’t it great that you don’t need to take responsibility for your fuck-ups / greed if you pay yourselves massive salaries, or maybe pillage your staffs pension funds (cf Phillip Green)?
Is this not womens work ?
Not when she’s on holiday FFS.
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No news on this sale @Map-Of-Tasmania. Deloittes saying today all shops will shut soon as no buyer yet?