Time To Baton Down The Hatches?

[youngmafbog]

Virgin Atlantic files for bankruptcy, WH Smiths looking at 1500 job cuts William Hill permanently shut 199 shops and small businesses now fearing they have just none weeks left before they run out of cash.

Looks like things are going to get very bumpy.

[New Judge]

Quelle surprise!

This government has presided over an economic disaster which is yet to hit the fan. Still people are not at work; still they are being paid by the taxpayer; still offices are empty and town and city centres deserted (as I can confirm as I went to Central London this morning).

Still they are bleating on about "second waves", "containing the virus", "preventing the spread", "must ensure it's safe". This is to deal with a disease which has virtually no effect on healthy under 50s and is currently responsible for just 2% of daily deaths. Next will be the impact on those suffering from "ordinary" ailments such as cancer, heart and lung problems and so on which, being non-Covid, are being neglected. I'm just reading about that now.

[barry1010]

WHSmith has been in trouble for a long time

[New Judge]

Virgin Atlantic hasn't. Nor have many of the other companies - particularly in the travel and hospitality industries - who are on the edge.

[AuntPollyGrey]

I think a lot of high street retail that were in dire straits before Covid will use it as an excuse for mass redundancies or closures.

Yes some people will be in for a huge shock when the Companies who have been keeping them on the books because the Government is paying their wages have to cough up cash in October. They will all be 'let go' in the millions and then the S will hit the F big time.

[gulliver1]

You ain't seen nothing yet, just wait until Brexit kicks in next year.

[barry1010]

If there is a demand for the services new companies will fill the gaps. It will be like a phoenix rising from the ashes - fresh, relevant, enthusiastic.

[Gromit]

Virgin have been in trouble for decades. Branson sold 49% of the company to Singapore Airlines in 1999. Singapore offloaded their share a decade later to US carrier Delta Airlines, by 2017 they were in financial trouble again. A plan to merge with Air France/KLM fell through in last December 2019. Covid obviously didn’t help, but the patient was terminal before the disease struck.

[gulliver1]

The only Phoenix the UK will see, are the Peter Kaye repeats.

[New Judge]

//If there is a demand for the services new companies will fill the gaps. It will be like a phoenix rising from the ashes - fresh, relevant, enthusiastic.//

I like your optimism. That might happen but not before untold damage is done to the UK's economy and to individuals' finances. To keep paying people until October is ludicrous. If firms are to let their people go, best they do so now and have done with. The situation will be no different in October except that the taxpayer will be a few tens of billions worse off. We will still have the likes of Prof Whitty prattling on about "second waves" and "the need for caution" and many businesses will still not be able to turn a decent profit. The mindset that we all need to be "kept safe" until a vaccine appears needs changing.

//You ain't seen nothing yet, just wait until Brexit kicks in next year.//

Brexit will be a minor blip on the graph when viewed alongside this current ongoing shambles.

[iluvmargie]

'ongoing shambles' is right!

[gulliver1]

13.55. Almost forgot to mention, we can't finalise brexit because IDS , says we ain't going to pay the 39 billion exit fee. So looks like we will have to stay.

[Gromit]

WHSmith started closing branches in 2018 blaming the general de line of the high street. Many of its flagship branches are in Travel hubs - Airports, train station and Malls which have been closed for 5 months. A long planned restructuring led to a load of job losses in April.

Again, the patient was having difficulties before covid, and the disease finished them off.

[mushroom25]

when/if some semblance of normality is restored and the government takes stock they will get an idea of how much it has all cost, and the amount of repayable debt the country has been left with. (massive.)

several on this forum have said either the previous economy business model was unsustainable, or that capitalism needs to be slowed down, and that the pandemic has "shown the way". well that's fine, but if there are millions suddenly no longer working and paying tax, it's difficult to comprehend how the newly redundant will be supported financially, and the pandemic debt serviced.

maybe Diane Abbott's time would have been now...….

[david small]

It’s sad, as this is easily avoided. Back to work yesterday would be my suggestion.

[dannyk13]

gulliver//So looks like we will have to stay.//
You really ought to stop playing the same drum.We are leaving and that is definite, we do not need permission from the EU.

[Gromit]

Print news has been declining for a years and accelerated recently as more people read the news on their tablets and smartphones.
And all the large supermarkets sell newspapers and magazines which has closed many independent newsagent shops.

[gulliver1]

Looks like this will be the Government of Borrow Spend then TAX, Till Death.

[dannyk13]

gulliver, why should you worry, as you allegedly live abroad?

[Gromit]

When Labour borrowed massively to save the banks, at least they bought assets with the money. When things improved we then sold back the shares in banks and we regained a lot of our money back. UK Government spent £20Billion on Lloyds bank and actually made £500 million profit when it sold its share in 2017.
The Furlough Scheme is very costly and isn’t going to work in saving jobs. 3 of my friends who were furloughed have now been fired after the Government spent £10,000 each subsidising their employment. And nothing to show for it.

[ToraToraTora]

gully we left on Jan 31, end of.