OT: Mike Ashley regretting buying House of Fraser

[Jack_Tinn]

MIke Ashley has had a bit of a bad day today and a bit of a bad week. If Sports Direct failing to be able to present its year end results on 18th July was bad enough they managed to miss their own invited presentation this morning....then missed the delayed reschedule at 2pm ......and then missed the delayed delayed reschedule at 4pm and now they have announced the scope of Ashley's ego, eh I meant the cost of rescuing House of Fraser.

It cost the group £90m to buy House of Fraser (not including the legal and financing costs involved in the deal) and basically they admitted to the city that it was a really unwise purchase and that it is worthless and there are stores that are paying zero rent that are losing money and it will cost the Group millions to close those stores and to restructure the business ......and then there is no guarantee that it will actually make any money!! It was a complete nightmare of a purchase and they have admitted to the city that they wish they had not made the purchase! Quite the admission.

To make matters worse now Sports Direct has been hit with a £605m bill from the Belgian Tax Man. Ouch.

Perhaps not a suprise therefore that the FD is leaving after 2 years (sacked no doubt)

https://www.bbc.co.uk/news/business-49133626

Still, at least Mike Ashley was deemed fit enough to own a football club! Ironic perhaps that the frustration of the fans is that Ashley won't spend any money on the playing staff ......but can throw £100m plus down the drain for House of Fraser apparently when it is Sports Direct shareholders money to fan his own ego and with the intent of thumbing his nose at Debenhams!

[The Cincinnati Kid]

Well, as much as I like to bash the Toon lets be fair. They just signed a Brazilian striker for 40 large and brought a midfielder in Jan for 20 large. both club records

[Jack_Tinn]

Well, as much as I like to bash the Toon lets be fair. They just signed a Brazilian striker for 40 large and brought a midfielder in Jan for 20 large. both club records

True, but let me enjoy the complete shambles that Ashley has got Sports Direct into over HoF for a while longer. I've always thought that you'd have to be a complete C-Womble to get the Toon fans offside, they just want their side to be competitive considering they have a 60,000 stadium that is filled every home game by deeply passionate football fans. Ashley has no support up there from the fans to speak of so a few signings now when he is trying to sell the club (and therefore increase the value that he gets on a multiple of the purchase/asset to be cynical) does not excuse the years and years of under investment

[Milton End]

What I find impossible to understand is the additional problem with the Belgian government.

Reportedly, Sports Direct suddenly discovered on 25th July 2019 that the company faces a tax bill of £605 million imposed by the Belgian tax authorities. "The company said the request for back taxes is linked to the way its goods are moved throughout the European Union and are taxed in Belgium."

To put this figure in perspective, it is more than double this year's annual profits of £287 million of the Sports Direct group.

How can a company miss such an obvious problem? In addition, the company has totally under-estimated the issues surrounding its acquisition of the House of Frazer stores. And its other recent retail store purchases. No wonder the Chief Finance Director is leaving!

Newcastle Football Club is probably the least of the Sports Direct worries at present. Mike Ashley has other major problems.

But that doesn't help the Newcastle supporters who deserve better from their cash-strapped owner.

[The Cincinnati Kid]

Well, as much as I like to bash the Toon lets be fair. They just signed a Brazilian striker for 40 large and brought a midfielder in Jan for 20 large. both club records

True, but let me enjoy the complete shambles that Ashley has got Sports Direct into over HoF for a while longer. I've always thought that you'd have to be a complete C-Womble to get the Toon fans offside, they just want their side to be competitive considering they have a 60,000 stadium that is filled every home game by deeply passionate football fans. Ashley has no support up there from the fans to speak of so a few signings now when he is trying to sell the club (and therefore increase the value that he gets on a multiple of the purchase/asset to be cynical) does not excuse the years and years of under investment

absolutely....i'm enjoying it with you as per my post on the appointment of dynamic Steve Bruce. All Rafa

[The Cincinnati Kid]

Well, as much as I like to bash the Toon lets be fair. They just signed a Brazilian striker for 40 large and brought a midfielder in Jan for 20 large. both club records

True, but let me enjoy the complete shambles that Ashley has got Sports Direct into over HoF for a while longer. I've always thought that you'd have to be a complete C-Womble to get the Toon fans offside, they just want their side to be competitive considering they have a 60,000 stadium that is filled every home game by deeply passionate football fans. Ashley has no support up there from the fans to speak of so a few signings now when he is trying to sell the club (and therefore increase the value that he gets on a multiple of the purchase/asset to be cynical) does not excuse the years and years of under investment

absolutely....i'm enjoying it with you as per my post on the appointment of dynamic Steve Bruce. All Rafa Benitez wanted was some team investment and he spends it after Rafa goes to China

[Jack_Tinn]

What I find impossible to understand is the additional problem with the Belgian government.

Reportedly, Sports Direct suddenly discovered on 25th July 2019 that the company faces a tax bill of £605 million imposed by the Belgian tax authorities. "The company said the request for back taxes is linked to the way its goods are moved throughout the European Union and are taxed in Belgium."

To put this figure in perspective, it is more than double this year's annual profits of £287 million of the Sports Direct group.

How can a company miss such an obvious problem? In addition, the company has totally under-estimated the issues surrounding its acquisition of the House of Frazer stores. And its other recent retail store purchases. No wonder the Chief Finance Director is leaving!

Newcastle Football Club is probably the least of the Sports Direct worries at present. Mike Ashley has other major problems.

But that doesn't help the Newcastle supporters who deserve better from their cash-strapped owner.

totally agree. I gave that some thought and the best I can come up with is Sports Direct must of chosen to register in some regards for tax in Belgium or perhaps their goods 'land in Belgium' first for tax purposes before then moving through the EU and into the UK for sales purposes. They might therefore pay corporate tax in the UK on the outcome of its trading but any import taxation would be collected in Belgium.

I agree with you though it shows up a tremendous level of naivety and there is no way that the sum of £605m can equate to one financial/calendar year and it must be something that has been building up over a long period and therefore something that you think someone in the company knew about and didn't address intentionally or negligently. Doesn't smake the FD look good nor the entire Board of Directors tbh.

The self styled "saviour of the high street's (and Debenhams)" 'main company owes all the profit that his company is likely to generate over the next few years to the Belgium government! I wish I was a fly on the wall over lunch at the next Debenhams Board mtg.