Anglo takes control of Arnotts

I.S.T.

I wonder how may other big names are in trouble:

http://www.independent.ie/business/irish/anglo-to-take-control-of-struggling-arnotts-2274662.html

Head The Wall

Boundary said it was facing a virtual wipe-out on its stake

Is this better or worse than a real wipe out ???

thebaldsoprano

So FF policy has now got the Government involved in the department store sector.

Hugo Chavez would be proud.

mikemac

Before this problem ever happened, Anglo had a 20% stake in the business.

Arnotts turned over 200 million euro in 2006 but 127 million euro in 2008, pretty poor considering the state of the country at that time. Other retailers were still doing well but not Arnotts

But it was a profitable business and still could be if a good management team are put in place.

As the last management team wasted their money on this whole "North Quarter" project, buying up buildings to build a landbank, it was estimated to cost 750 million euro to develop.
Could have made the owner billionaires but property market turned and the owners have been wiped out.

Anglo will take their time and not fire sale it.
But it will definitly be sold, bankers have no business running it (yeah, stick in a smart comment here )

Maybe a UK chain like Debenhams will buy it.
Or if an Irish team can pull together the money, it certainly can be a profitable investment but it won't be easy.

nesf

Classic case of how asset bubbles cause businesses with absolutely no track record or experience in the area to jump on board and get involved. I mean, a department store trying to become a developer...