Fears for UK retail property sector

[kerrynorth]

The UK papers today are full of scare stories for the health of the UK retail property sector. M and S are going to report a 2pc fall in like for like sales and Land of Leather an amazing 25.5pc fall over the Christmas period. But of most interest is the suggestion that well known chains that have hundreds of retail outlets each will be forced into liquidation and administration. If this occurs then the retail landlords among whom highly levereged Irish investors are prominent are in for a big hit in both rental income and valuations.

[verbatim]

Traders seek present from shorting Debenhams

City traders have staked more than £150m on a disappointing Christmas trading update from troubled retailer Debenhams.

Short sellers have sold more than 200m shares in the retailer they do not own ahead of Debenhams’ trading update later this month, according to Data Explorers, a research company that monitors stock lending to detect short-selling.

“Hedge funds have been shorting Debenhams’ stock since June last year, but we have seen exceptional borrowing activity during the last week,” said Alex Hoffman of Data Explorers.

A Debenhams store: Traders seek present from shorting Debenhams
High street battle: Debenhams is overreliant on clothes sales

In the past seven days the percentage of Debenhams stock on loan - a key indicator of short selling - has jumped from 20pc to 25pc amid growing fears of a dismal Christmas for retailers.
…

[daveirl]

25pc! Wow. When the Indo was whinging about the evil hedge funds shorting Anglo, 15% of it’s stock was on loan.

[Calvin_J]

Its a pity you cant short sell irish houses and apartments. It would really help the market.