anglo to take over Arnotts


#21

Well there were 2 schools of thoughts doing the rounds at the time

1] Profits / Yields do not matter. Its all about Capital Gains and passing the baton on to the “Greater Fool”.
2] Using projections of 15 EUR pints and 1,000 EUR a night rooms, the sums just about added up.

Of course as it turned out. The Greater Fool was in fact the guy left holding the baton in 2006/07 and a room in the Shelbourne costs less than half the rate of a second rate hotel in Manhattan or Central London / Paris.
Dublin was never in the same league as these cities and never will be, but alot of people thought it would. Irish developers passing Buffet and Bill Gates in terms of wealth was surely only 10 years away


#22

Arnotts must now be in the running for consideration as the corporate poster boy for how to turn a relatively decent business into a basket case in one easy step; by simply ignoring common sense and buying into the spin and hype of the property vested interests. Those that merrily skippered the business full steam ahead onto the rocks were more than ably assisted and abetted by their intellectual equals in the banks.

The alleged board room shenanigans that went on in the preamble to the company’s disastrous foray into property, with dissenters being bought out in order to clear the way for the project, would seem to be just one more example of the collective national lunacy that gripped Celtic Tiger Ireland; global property central.

When the lunatics take over, or in the case of Irish business, banking and politics, the one track, property obsessed, get rich quick brigade that are currently in charge (or have recently departed the scene of the crime), it’s yet again the general citizenry and employees that suffer and have to worry about the consequences.

The shocking part of this isn’t that it has happened, nor that it has happened in Ireland to this particular well know business, to my mind, it’s that we have seen this pattern in bubbles before and that the people who should have known better and were no doubt paid accordingly, simply didn’t.

Blue Horseshoe


#23

Arnotts borrowed money from Anglo to pay interest on the loan received from Ulster Bank :unamused:


#24

Consider this.
Arnotts was established in 1843, and in it’s formative years , only 4 years later, came the Famine. and yet it pulled through.
Paradoxically, its downfall happened AFTER the greatest period of growth in the history of the State.
I’d assume management heads would roll after this.
Greed is good…NOT.


#25

There is an old saying that almost all family businesses get ruined by the third generation. 8DD 8DD


#26

Am I wrong in recalling some board room struggles not so long ago centred on the ‘Family’ element of the ownership’s reluctance to go down the mega development road? It seems the more traditionally minded members of the board made the right call but unfortunately the decision went against them

Sickened isn’t the word…


#27

I will gladly pay you Tuesday for a hamburger today


#28

What do you bet Anglo got equity from Mr. McFadden in return? i.e. wiped out sort of stuff. If Anglo got a bag of Bertie Bott’s Everyflavour Beans, they’d all be snot and shite flavoured. My guess is that Ulster Bank put in less money, but has at least the same level of ownership if not more than Anglo because it has more senior debt. The optics, though, of “the British Government take over the northsider’s favourite store” doesn’t look so good…


#29

facepalm.org/


#30

So how wise is it to have a wedding list with Arnott’s? I’m going to a wedding next week and their list is in Arnott’s, I’m wondering if I should get them a voucher for somewhere else.

I know when I married it was probably the guts of a year before we used up all our vouchers. I’m not sure I’d be that happy holding on to Arnott’s vouchers for very long now. (The couple are mid build so it could be a while before they redeem them)


#31

Well, Mrs Confused is planning to spend the last of our Arnotts wedding vouchers either on her lunchtime today or tomorrow morning. Better be safe than sorry.


#32

Decision on Anglo, Ulster Bank takeover of Arnotts due this week -> independent.ie/business/iris … 89585.html


#33

EU approves banks’ move on Arnotts
The European Commission has approved the move to allow Anglo Irish Bank and Ulster Bank assume full control of the Dublin department store Arnotts. Arnotts is struggling with debts of €300m. A leading retail specialist and CEO of private equity firm Palladin Capital Group, Mark Schwartz, is set to be appointed to oversee the management of the business. Mr Schwartz has been working closely with the banks and Arnotts for the last five months.


#34

Anglo snubbed foreign suitors for troubled Arnotts - Shane Ross -> independent.ie/business/iris … 43656.html


#35

Anglo can’t take on new customers - hence can’t do deals in the main


#36

Writedowns see Arnotts take record €295m loss - CIARÁN HANCOCK -> irishtimes.com/newspaper/fin … 79018.html


#37

Arnotts in running to buy back its Anglo loans - Roisin Burke -> independent.ie/business/iris … 79190.html


#38

What is the likelihood of the Weston family buying Arnotts? Given that they own most of Primark and it almost surrounds Arnotts. And they also own Brown Thomas which is also upmarket.

EDIT: I hadn’t read the whole article before making that comment, but it’s noteworthy to add that Brown Thomas and Selfridges are both owned by the Weston family. Something which had escaped the Indo hack, as well as the primark connection.