Euro Garage Issa brothers

[spygirl]

No.

Theyll attempt to sue Asda  cash flow but itll all collapse.

 

[spygirl]

 

[sancho panza]

On 14/04/2023 at 10:23, spygirl said:

No.

Theyll attempt to sue Asda  cash flow but itll all collapse.

 

fascinating how they've leveraged it all up on very little capital.WOnder who the patsy will be?

[spygirl]

2 minutes ago, sancho panza said:

fascinating how they've leveraged it all up on very little capital.WOnder who the patsy will be?

ECB

[Option5]

And so it begins:

BBC News - Asda consults on cutting pay for 7,000 workers
https://www.bbc.co.uk/news/business-65637493

 

[One percent]

5 minutes ago, Option5 said:

And so it begins:

BBC News - Asda consults on cutting pay for 7,000 workers
https://www.bbc.co.uk/news/business-65637493

 

They clearly think sap taxpayer is happy to further subsidise their workforce.   

[HousePriceMania]

3 hours ago, Option5 said:

And so it begins:

BBC News - Asda consults on cutting pay for 7,000 workers
https://www.bbc.co.uk/news/business-65637493

 

Wage price downwards spiral 

[One percent]

1 minute ago, HousePriceMania said:

Wage price downwards spiral 

This is all unraveling though. People leaving the workforce in droves. Government begging and then threatening the over 55s who have dared to show them two fingers. Lots of people on bennies , so why would they bother. Useless eaters being imported who aren’t capable.  
their wishful thinking is hitting reality imho.  

[Great Guy]

On 30/10/2022 at 13:24, Joncrete Cungle said:

A lot of locals will raise a glass when the Issa brothers comeuppance is finally served.

Why are they not liked?

[Great Guy]

On 14/04/2023 at 10:25, spygirl said:

 

Why are British companies, operating in Britain, allowed to be owned by another company in a tax haven?

[One percent]

4 minutes ago, Great Guy said:

Why are British companies, operating in Britain, allowed to be owned by another company in a tax haven?

Coz our government would sell our grannies for ten bob.  

[Joncrete Cungle]

On 18/05/2023 at 22:11, Great Guy said:

Why are they not liked?

Demolishing lots of existing older houses with character to replace them with 5 Mc Mansions for their kids. Taking the piss by ignoring planning conditions, changing the houses, making them bigger.

Thinking they are above the law, no consideration for their neighbours. Other things that I don't want to post.

[gibbon]

ASDA employees need to start worrying about their pensions. 

[spygirl]

https://www.ft.com/content/caf2d33a-f91f-4ad8-997e-7f3e5ce989ff

Supermarket Asda will buy EG Group’s operations in the UK and Ireland in a £2.3bn deal that the Issa brothers hope will put their petrol station empire on a firmer financial footing. 

The proceeds, in addition to $1.4bn from a recent sale-and-leaseback deal in the US, will be used to repay EG Group’s debt of around $9bn, they said, with net leverage expected to fall to below five times. 

Zuber Issa said the transaction was “an important strategic step” for the group, co-owned by TDR Capital. “Following this sale, EG Group will benefit from a significantly strengthened balance sheet.”

 

EG are now in the situation of shovelling one pile of shit to another pile, generating large fees for bankers n lawyers.

Fuckwits.

 

 

[MrXxxx]

On 20/05/2023 at 17:57, gibbon said:

ASDA employees need to start worrying about their pensions. 

Yes and no, they will be protected by the PPF assuming its not a DC scheme [https://www.google.com/search?client=firefox-b-d&q=pension+protection+scheme] and only on up to 90% if they haven't yet retired or retired early, and up to a threshold....this all came about as a consequence of Robert Maxwell penison 'issue' [https://en.wikipedia.org/wiki/Robert_Maxwell]

[Frank Hovis]

2 hours ago, spygirl said:

https://www.ft.com/content/caf2d33a-f91f-4ad8-997e-7f3e5ce989ff

Supermarket Asda will buy EG Group’s operations in the UK and Ireland in a £2.3bn deal that the Issa brothers hope will put their petrol station empire on a firmer financial footing. 

The proceeds, in addition to $1.4bn from a recent sale-and-leaseback deal in the US, will be used to repay EG Group’s debt of around $9bn, they said, with net leverage expected to fall to below five times. 

Zuber Issa said the transaction was “an important strategic step” for the group, co-owned by TDR Capital. “Following this sale, EG Group will benefit from a significantly strengthened balance sheet.”

 

EG are now in the situation of shovelling one pile of shit to another pile, generating large fees for bankers n lawyers.

Fuckwits.

 

 

 

I generally view sale and leaseback as being the last resort of the desperate.

[sancho panza]

6 hours ago, spygirl said:

https://www.ft.com/content/caf2d33a-f91f-4ad8-997e-7f3e5ce989ff

Supermarket Asda will buy EG Group’s operations in the UK and Ireland in a £2.3bn deal that the Issa brothers hope will put their petrol station empire on a firmer financial footing. 

The proceeds, in addition to $1.4bn from a recent sale-and-leaseback deal in the US, will be used to repay EG Group’s debt of around $9bn, they said, with net leverage expected to fall to below five times. 

Zuber Issa said the transaction was “an important strategic step” for the group, co-owned by TDR Capital. “Following this sale, EG Group will benefit from a significantly strengthened balance sheet.”

 

EG are now in the situation of shovelling one pile of shit to another pile, generating large fees for bankers n lawyers.

Fuckwits.

 

 

It's quite clever really tho,now instead of two struggling businesses loaded with laods of debt,there's only one.

Thats progress spy

[Bilbo]

Not sure I understand this

https://www.standard.co.uk/business/issa-brothers-eg-group-shifted-ps3-billion-in-debt-prior-to-asda-merger-filings-show-mohsin-issa-zuber-issa-euro-garages-b1085165.html#comments-area

In late January, the firm’s holding company bought shares in its financing subsidiary, EG Finco, in exchange for a £3.03 billion loan, filings released last month show. The following day, Finco declared a dividend to its parent company for the same sum, which it used to invest in its American subsidiary, thereby releasing it from its debt obligations.

[spygirl]

Asda’s owners recycle proceeds of earlier deal to fund EG takeover

Promised £450mn of extra equity comes from a warehouse sale and leaseback that was part of the original buyout

https://www.ft.com/content/6e61b472-755a-4dbd-a540-f0d7575c1248

Asda’s owners are using the proceeds of an earlier asset sale to fund their contribution to the supermarket’s takeover of parts of EG Group, another business they own, in the latest example of financial engineering that has allowed them to limit their cash outlay on the business

..

 

Amarveer Singh, a senior analyst at CreditSights, said in a note this week: “The new equity money was a surprise and serves as a favourable signal to investors, while the fairly long six-year maturity of the (understandably expensive) term loan provides some refinancing breathing room for the existing bonds maturing in 2026 and 2027.”

 

Is there any benefit / upside for Asda’s other stakeholders? Or just the Issa brothers and PE (and lending banks)? Is this just building a bigger house of cards?

thumb_up Recommend 26 reply Reply share Share flag Report remove Kielder 8 HOURS AGO

Crikey I read last week that Asda is trying to drop the 60p per hour premium for their workers who work in SE England. In the current inflationary environment, you wouldn't do that unless desperate. This transaction doesn't work with normalising rates. Also a corporate governance nightmare. thumb_up Recommend 25 reply Reply share Share flag Report remove

Sunny 5 HOURS AGO reply   In reply to Kielder Previous owners of Asda were just as cut throat if not more. A nightmare for the workers but customers/investors didn’t complain back then 🙃 thumb_up Recommend 2 reply Reply share Share flag Report remove irg

5 HOURS AGO reply   In reply to Sunny Customers didn't complain because the affordable food prices were worth it. If that comes at risk, then Asda could suffer. thumb_up Recommend 2 reply Reply share Share flag Report remove

Wlkrrch 8 HOURS AGO Because sale and leaseback worked so well for Debenhams. Isn’t it time there was a sniff test for leveraged buyouts to ascertain whether they are likely to be beneficial to the target company? thumb_up Recommend 19 reply Reply share

Share flag Report remove Androcydes 7 HOURS AGO (Edited) reply   In reply to Wlkrrch It was beneficial to original the owners of the target company. Remember, the regulator blocked the sale to Sainsburys.

thumb_up Recommend 4 reply Reply share Share flag Report remove Androcydes 7 HOURS AGO As these are two businesses already owned by these people, combining them makes very little difference really. The financial engineering had already taken place in the companies separately. But there is no way that borrowing at 11% interest rates is viable for such low growth businesses. The combined business will almost certainly fail on a 3 year view. thumb_up Recommend 16 reply Reply share Share flag Report remove

QuartoQuatro 6 HOURS AGO (Edited) Asda will have a sustainable capital structure, strong cash generation capabilities and clear strategy to grow ebitda, which, all combined, will enable Asda to reduce its debt over time,” the company added. Hmmm. I was in an Asda yesterday for the first time in years (needs must). The store was busy but it and the offering looked tired. A messy, scruffy, hodge podge. I’m not sure where they sit in the pile any more. They’re clearly not competing with M&S/Waitrose nor the mid market places. Aldi and Lidl are brighter and look like they’ve been investing in the business. Suffice to say I can only see them growing ebitda through a deliberate policy of underinvestment while they grapple with the onerous debt servicing. Short termism everywhere. thumb_up Recommend 13 reply Reply share Share flag Report remove

Badabing 6 HOURS AGO I’d be surprised if Asda is still trading at the end of the decade. This stinks. thumb_up Recommend 13 reply Reply share Share flag Report remove Kedge 7 HOURS AGO Smelly thumb_up Recommend 13 reply Reply share Share flag Report remove Le Gun 7 HOURS AGO

[spygirl]

On 14/05/2022 at 08:25, spygirl said:

This one is coming back and shitting on me.

Oct 21

https://www.foodmanufacture.co.uk/Article/2021/10/06/Bakery-manufacturer-Cooplands-acquired-by-EG-Group

Today -

 

 

Rachel WaltersCooplands Bakery

April 28 at 6:01 PM  ·

 

Sorry to say that the takeover has been disastrous to the sandwich offering. Limited choice, stuff that's too fancy and terrible choice of bread rolls. Such a shame when big companies come in and destroy what has worked on a local platform for years. They clearly do not have any clue about their local customer base.

 

Cooplands Bakery

Hi Rachel, we are really sorry to read this. After reviewing our range and looking at our competitors we felt like we needed to redevelop and improve our sandwich range. We've introduced a new and larger sub roll, improved our fillings as well as introducing new ones. We've also had to make the difficult decision to remove some of the "less popular" sandwiches which weren't performing as well. You can also ask for it to be made just how you like it, so if you require any extras, then please don't be afraid to ask we hope this answers your questions.

 

Scarborough’s The Secret Garden cafe to close as new Cooplands plans revealed

Cooplands in Scarborough’s town centre is closing its popular cafe as it takes on a rebrand and new look.

 

https://www.thescarboroughnews.co.uk/news/people/scarboroughs-the-secret-garden-cafe-to-close-as-new-cooplands-plans-revealed-3689420

And that's Cooplands fucked.

https://www.thisismoney.co.uk/money/article-12252203/Major-bakery-chain-shuts-nine-shops-country.html?ico=mol_desktop_home-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fhome%2Findex.html&_ga=2.38338723.1843235208.1687934820-529838115.1684099332&_gl=1*1fk94e2*_ga*NTI5ODM4MTE1LjE2ODQwOTkzMzI.*_ga_XE0XLFFF16*MTY4ODE1NTQ4Ny4xMi4xLjE2ODgxNTU2MzAuMC4wLjA.

[eek]

9 minutes ago, spygirl said:

And that's Cooplands fucked.

https://www.thisismoney.co.uk/money/article-12252203/Major-bakery-chain-shuts-nine-shops-country.html?ico=mol_desktop_home-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fhome%2Findex.html&_ga=2.38338723.1843235208.1687934820-529838115.1684099332&_gl=1*1fk94e2*_ga*NTI5ODM4MTE1LjE2ODQwOTkzMzI.*_ga_XE0XLFFF16*MTY4ODE1NTQ4Ny4xMi4xLjE2ODgxNTU2MzAuMC4wLjA.

They’ve closed more than those 9 our local one closed earlier this month

[spygirl]

Asda and Morrisons increasing fuel margins for UK consumers, watchdog says

Government pledges reforms after CMA calls for greater market transparency for motorists

https://www.ft.com/content/75634a94-7993-4919-8128-1428e575f529

Its a bit like the Hunts brothers tryingto corner Silver in 1980.

Im sure EG will reap alrge profits .... as long as they buy *all* petrol stations.

 

[AWW]

They are no different to those hoarders who buy any old shit on eBay and in charity shops just because it looks cheap.

[One percent]

On 30/06/2023 at 21:09, spygirl said:

And that's Cooplands fucked.

https://www.thisismoney.co.uk/money/article-12252203/Major-bakery-chain-shuts-nine-shops-country.html?ico=mol_desktop_home-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fhome%2Findex.html&_ga=2.38338723.1843235208.1687934820-529838115.1684099332&_gl=1*1fk94e2*_ga*NTI5ODM4MTE1LjE2ODQwOTkzMzI.*_ga_XE0XLFFF16*MTY4ODE1NTQ4Ny4xMi4xLjE2ODgxNTU2MzAuMC4wLjA.

There’s nowt in the window of my local one.  Mind, a greggs has just opened round the corner 

[sancho panza]

I think theyre f##ked to be fair

https://uk.finance.yahoo.com/news/billionaire-issa-brothers-sell-dozens-184830555.html

Billionaire Issa brothers sell dozens of US convenience stores in battle to pay down debt

The billionaire owners of Asda and petrol station giant EG Group are selling off a swathe of convenience stores in the US as they race to pay down billions of pounds of debt.

Mohsin and Zuber Issa have offloaded 63 EG Group-owned shops in Kentucky and Tennessee to the American chain Casey’s General Stores for an undisclosed sum.

The brothers have been selling off assets to reduce debts racked up from the huge expansion of their retail empire.

 

EG Group’s debts stood at $9.67bn (£7.6bn) at the end of 2022, according to company accounts.

Zuber Issa said: “For EG Group, this divestment also represents another important step in executing our deleveraging strategy.”

It came as Moody’s warned on Tuesday that Asda, which the Issas bought for £6.8bn in 2021, was facing pressure amid fierce competition in the grocery sector.

The credit rating agency said the retailer faced risks related to the execution of its recent £2.3bn purchase of EG Group’s forecourts business in the UK and Ireland.

The brothers sold the division to Asda earlier this year for £2.3bn to help pay down EG’s debt.

But in doing , it loaded Asda with £770m of high interest loans and relied upon a £450m cash injection from shareholders.

Moody’s placed Asda’s current debt pile at £7.5bn.

As interest rates increased, so has the cost of servicing large debt piles – heaping pressure on businesses which are highly leveraged.

However, Asda chairman Lord Stuart Rose has defended the supermarket’s acquisition of EG’s forecourts business.

He said earlier this year: “The business will grow. Debt over time comes down. And we believe this is a fully sustainable financial position to be in the capital structure.”

The Blackburn-born Issa Brothers, who own more than 6,600 petrol stations and stores across the UK, Europe, the US and Australia, founded the business in Bury, Greater Manchester, 22 years ago.

They financed a rapid expansion over the last decade with mountains of debt, taking advantage of low interest rates.

As well as Asda, they also acquired healthy fast food chain Leon for £100m in 2021.

Asda recently revealed that its like-for-like sales, excluding fuel, rose by almost 10pc to £5.4bn from April to June, compared to the same period last year.

It said that sales across its value range, Just Essentials, had grown by 87pc year-on-year as British households cut back on their spending due to the cost of living crisis.