Euro Garage Issa brothers

[Chewing Grass]

9 minutes ago, sancho panza said:

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.

Hillarious how the Butt Ugly Twins from Bhutt Ugly Land use a 'Lord' as a front for their UK Operation.

[One percent]

Oh dear

https://www.bbc.co.uk/news/business-66705503
 

MPs have questioned Asda over whether issues over its finances are stopping it doing more to tackle soaring prices. 

In a letter to one of its co-owners, the chair of the business committee demanded an explanation of the grocer's "complex" company structure and details about loans and investments.

It comes after Asda executives were grilled by politicians in July over concerns about high fuel prices.

An Asda spokesman said it was co-operating with the committee's inquiry.

The billionaire Issa brothers bought Asda in 2020 in a £6.8bn deal. They then merged it last May with the UK and Irish division of their petrol forecourt business EG Group, greatly expanding Asda's network of filling stations.
 

It also seeks extra information about levels of investment and loans from EG Group, which helped fund the battle to buy Asda from the US supermarket giant Walmart.

"When you and your brother bought Asda from Walmart for £6.8bn, you personally invested £200m. Where did this finance come from?" Mr Jones' letter reads.
 

[Ash4781b]

Yeah heard a few people talking about Asda being really expensive. I’m not sure where the Mp’s / committee get data from.

Sainsburys seem to have woken up with quite aggressive marketing. They ran a big Heinz promotion at the weekend.

[spygirl]

https://www.bbc.co.uk/news/business-66705503

MPs have questioned Asda over whether issues over its finances are stopping it doing more to tackle soaring prices.

In a letter to one of its co-owners, the chair of the business committee demanded an explanation of the grocer's "complex" company structure and details about loans and investments.

It comes after Asda executives were grilled by politicians in July over concerns about high fuel prices.

An Asda spokesman said it was co-operating with the committee's inquiry.

 

Nohting complex.

They are well over their heads and fucked.

 

[planit]

The incompetent, anti-capitalist BBC reporting on the incompetent government's pointless questions to a private incompetent company.

Made me chuckle.

[Option5]

There's another Issa brother Zakir who runs EP Properties He's just bought a bankrupt shopping centre and the John Lewis building in Aberdeen.

Both have been loss making for years as Aberdeen has gone downhill since the oil boom years.

Mind you he only paid £270,000 for the John Lewis store which cost JL £14.3 million in 2011.

https://www.pressandjournal.co.uk/fp/news/aberdeen-aberdeenshire/6117757/john-lewis-building-sold-aberdeen/

 

[Calcutta]

23 minutes ago, Option5 said:

There's another Issa brother Zakir who runs EP Properties He's just bought a bankrupt shopping centre and the John Lewis building in Aberdeen.

Both have been loss making for years as Aberdeen has gone downhill since the oil boom years.

Mind you he only paid £270,000 for the John Lewis store which cost JL £14.3 million in 2011.

https://www.pressandjournal.co.uk/fp/news/aberdeen-aberdeenshire/6117757/john-lewis-building-sold-aberdeen/

 

Fucking state of that. 

[Frank Hovis]

40 minutes ago, Option5 said:

Mind you he only paid £270,000 for the John Lewis store which cost JL £14.3 million in 2011.

 

Unwanted commercial property is usually dead cheap, this is up for sale in Plymouth with guide auction price £375k, unlike domestic properties where there can be stupidly low guide prices this is probably about right.

 

https://www.plymouthherald.co.uk/news/plymouth-news/huge-plymouth-office-block-goes-8720760

 

[sancho panza]

22 hours ago, spygirl said:

https://www.bbc.co.uk/news/business-66705503

MPs have questioned Asda over whether issues over its finances are stopping it doing more to tackle soaring prices.

In a letter to one of its co-owners, the chair of the business committee demanded an explanation of the grocer's "complex" company structure and details about loans and investments.

It comes after Asda executives were grilled by politicians in July over concerns about high fuel prices.

An Asda spokesman said it was co-operating with the committee's inquiry.

 

Nohting complex.

They are well over their heads and fucked.

 

I think it's about when suppliers pull the plug tbh.

You hear rumours about empty shelves but the few times Ive been in.it's got stuff on them.

Witht eh IR changes since sept 22,they must be up poop creek given how miuch debt they have.

[sancho panza]

On 05/09/2023 at 12:42, sancho panza said:

I think it's about when suppliers pull the plug tbh.

You hear rumours about empty shelves but the few times Ive been in.it's got stuff on them.

Witht eh IR changes since sept 22,they must be up poop creek given how miuch debt they have.

Wilko bidless

suppliers undid the only group bidding for the bulk of the firm

https://uk.finance.yahoo.com/news/wilko-hmv-owner-bid-buy-075651877.html

All 400 Wilko shops to close with loss of more than 12,000 jobs

All of Wilko’s 400-plus stores are to close with the loss of more than 12,000 jobs after talks with potential buyers failed to deliver a rescue deal for the stricken retailer.

The GMB union said on Monday that the administrators, PwC, had informed staff that all of the chain’s 408 stores were set to close by early October.

Wilko’s two big warehouses, in Worksop, Nottinghamshire, and Newport, Wales – at which 299 staff have already been cut – are to close on Friday next week.

Putman’s plan, which offered the best chance of saving stores and jobs, originally involved trying to keep 300 stores and their staff running.

“It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern,” he said.

The deal ran into trouble earlier this month when some big suppliers, including Unilever and Procter & Gamble, which supply many staple household cleaning and food products, said they wanted their debts repaid now in order to continue to guarantee supplying Wilko’s stores.

[reformed nice guy]

37 minutes ago, sancho panza said:

The deal ran into trouble earlier this month when some big suppliers, including Unilever and Procter & Gamble, which supply many staple household cleaning and food products, said they wanted their debts repaid now in order to continue to guarantee supplying Wilko’s stores.

That is an interesting statement. They have a global picture and can watch demand one step ahead of retail sales figures.

 

[spygirl]

On 05/09/2023 at 11:50, Frank Hovis said:

 

Unwanted commercial property is usually dead cheap, this is up for sale in Plymouth with guide auction price £375k, unlike domestic properties where there can be stupidly low guide prices this is probably about right.

 

https://www.plymouthherald.co.uk/news/plymouth-news/huge-plymouth-office-block-goes-8720760

 

When I worked in Bracknel in 94, I was in a large office space, divided into 4 or 5, each a seperate comoany, each with 100+ well paid employees.

A old mate drove by it recently. The entire lot is now a n ce rink, probably employing 10 people on nmw.

 

[spygirl]

On 11/09/2023 at 15:42, sancho panza said:

Wilko bidless

suppliers undid the only group bidding for the bulk of the firm

https://uk.finance.yahoo.com/news/wilko-hmv-owner-bid-buy-075651877.html

All 400 Wilko shops to close with loss of more than 12,000 jobs

All of Wilko’s 400-plus stores are to close with the loss of more than 12,000 jobs after talks with potential buyers failed to deliver a rescue deal for the stricken retailer.

The GMB union said on Monday that the administrators, PwC, had informed staff that all of the chain’s 408 stores were set to close by early October.

Wilko’s two big warehouses, in Worksop, Nottinghamshire, and Newport, Wales – at which 299 staff have already been cut – are to close on Friday next week.

Putman’s plan, which offered the best chance of saving stores and jobs, originally involved trying to keep 300 stores and their staff running.

“It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern,” he said.

The deal ran into trouble earlier this month when some big suppliers, including Unilever and Procter & Gamble, which supply many staple household cleaning and food products, said they wanted their debts repaid now in order to continue to guarantee supplying Wilko’s stores.

Super market.

Shops are leased.

Stock comes in on suppliers credit - 100 day, whatever. They sell it, skim their 1%

That literally is the business.

And this is why I'm piseed of with pe cuntweasels getting Morrisons, who were vertically integrated and added value.

[spygirl]

https://www.standard.co.uk/business/asda-issues-ps2-1-billion-dividend-after-issa-brothers-takeover-as-profits-plunge-80-eg-group-b1110324.html

A

sda declared a £2.1 billion dividend the year after being bought by the billionaire Issa brothers, accounts published today show, as the pair sought to juggle debts around their sprawling retail and petrol forecourt empire.

The supermarket declared the dividend to its parent company Bellis Finco, owned by the Issas and private equite firm TDR Capital, in September last year, despite a more-than 80% drop in pre-tax profits to £197.8 million in 2022.

[Chewing Grass]

There should be a Public Inquiry into the financial arrangements of these two parasites parading as businessmen, they will be buying a football club next I presume.

[The Grey Man]

1 minute ago, Chewing Grass said:

There should be a Public Inquiry into the financial arrangements of these two parasites parading as businessmen, they will be buying a football club next I presume.

They are a crash waiting to happen.

No doubt they know that and have planned accordingly.

 

[Balding Badger]

Well, a £2 Billion dividend on a £200m profit can't go on for long, that's for sure. Didn't these people used to be called asset strippers? These days they are probably considered astute financial  engineers.

[spygirl]

Oct 20 -

Walmart sells majority stake in Asda

Deal with Issa brothers and TDR Capital values UK supermarket group at £6.8bn

[Option5]

11 minutes ago, Balding Badger said:

Well, a £2 Billion dividend on a £200m profit can't go on for long, that's for sure. Didn't these people used to be called asset strippers? These days they are probably considered astute financial  engineers.

Asset stripping, surely not.🥺

Lots of sell and leaseback deals though in both UK and US.

https://www.grocerygazette.co.uk/2023/06/15/issa-brothers-asda-property-us/

[Balding Badger]

7 minutes ago, spygirl said:

Deal with Issa brothers and TDR Capital values UK supermarket group at £6.8bn

I don't know what kind of dividends they have paid previously but at the rate of this one things would be getting interesting any time now.

As the most low-brow of the traditional supermarkets Asda ought to have done well in the current environment, instead I understand they seem expensive and badly stocked, losing customers to all competitors. In the hands of such custodians there must be a genuine fear they could collapse.

[spygirl]

2 minutes ago, Balding Badger said:

I don't know what kind of dividends they have paid previously but at the rate of this one things would be getting interesting any time now.

As the most low-brow of the traditional supermarkets Asda ought to have done well in the current environment, instead I understand they seem expensive and badly stocked, losing customers to all competitors. In the hands of such custodians there must be a genuine fear they could collapse.

Its less that the divi the ButtUgly n PE Cuntweasles pull out, more that the rise in the ECB bonds that theyve used to buy all the stuff.

 

[Balding Badger]

It won't be helping though.

Private equity have destroyed plenty of good firms in my industry, always in the name of maximising value, which always involves extracting money from the business any way they can until the debts overwhelm it. 

[sancho panza]

2 hours ago, Balding Badger said:

As the most low-brow of the traditional supermarkets Asda ought to have done well in the current environment, instead I understand they seem expensive and badly stocked, losing customers to all competitors. In the hands of such custodians there must be a genuine fear they could collapse.

I shop there occasioanlly for logistical reasosn.and I do the family shopping generally.

A) they're jsut not that cheap

B) they're jsut not that cheap.

C) shopping at Aldi has lost it's stigma.I remmebr back in 05/06 being in Aldi on a sat afternoon or midweek day and customers being outnumbered by the staff quite often.

At Aldi you don't have to look at the prices ,it's the specially selected ro the cheaprer version generally.

ASda used to say they didn't do loyalty cards because they jsut focused on cheap prices

hows' that going?

https://rewards.asda.com/login/

SO basically they're jsut a low brow version of Sainsburys and Tesco these days minus the solid finaical base obviously.

1 hour ago, Balding Badger said:

It won't be helping though.

Private equity have destroyed plenty of good firms in my industry, always in the name of maximising value, which always involves extracting money from the business any way they can until the debts overwhelm it. 

I remember the pre Zirp days and private equity didn't exist tot eh degree it did during Zirp.Please feel free to correct me,but artifically low rates let thsoe parasites in for sale and leaseback.

[spygirl]

11 hours ago, sancho panza said:

I shop there occasioanlly for logistical reasosn.and I do the family shopping generally.

A) they're jsut not that cheap

B) they're jsut not that cheap.

C) shopping at Aldi has lost it's stigma.I remmebr back in 05/06 being in Aldi on a sat afternoon or midweek day and customers being outnumbered by the staff quite often.

At Aldi you don't have to look at the prices ,it's the specially selected ro the cheaprer version generally.

ASda used to say they didn't do loyalty cards because they jsut focused on cheap prices

hows' that going?

https://rewards.asda.com/login/

SO basically they're jsut a low brow version of Sainsburys and Tesco these days minus the solid finaical base obviously.

I remember the pre Zirp days and private equity didn't exist tot eh degree it did during Zirp.Please feel free to correct me,but artifically low rates let thsoe parasites in for sale and leaseback.

PE is a funny ine.

It's always existed.

However it's the current destructive v highly leveraged form that's the problem.

V high leveraged only became a thing in the uk with Browns idiot bank lending.

It's been cranked fiwn which us why there's do many PE buying each others junk I.e scam prices.

Is bris /tpg have leveraged up into ECBs zirp.

Thujs has niw ended.

[spygirl]

https://www.retailgazette.co.uk/blog/2023/10/asda-issa-brothersmistakes-mps/

Asda billionaire co-owners the Issa brothers have admitted providing inaccurate information to MPs about the intricate offshore ownership structure known as ‘Bellis’ that they established for Asda following their £6.8bn acquisition in 2021.

After facing questions by MPs on the Business and Trade Committee over his management of the supermarket, Mohsin Issa wrote a letter to the committee, which was published last week, where he clarified its corporate structure, setting out a list of 24 companies that were connected to the supermarket.

The Evening Standard revealed discrepancies within the letter, including inaccuracies regarding the offshore tax haven status of companies, inconsistencies in the stated purposes of various holding firms, and omissions concerning other businesses within the corporate structure.

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The letter to MPs suggests that three companies (Asda Group, Asda Stores and McLagan Investments) reside in Jersey, when they are in fact domiciled in the UK.

Mohsin wrote in his letter to MPs: “Without seeing it set out in front of me or with any prior indication that it was an area for discussion, I indicated on the day that this sounded correct,”

“Upon reading the transcript, however, I realise that while the entities themselves are correct, the structure as described was inverted.”

In a statement Asda said: “Unfortunately, there was an error in the table laying out the group of companies, incorrectly suggesting that Asda Group, Asda Stores and McLagan Investments were Jersey domiciled, when they have always been domiciled in the UK. All group companies are UK registered and pay tax in the UK in accordance with UK tax legislation.”

Asda did not explain why ownership of Wagestream shares had been moved around the Bellis corporate structure.

The letter additionally provides information about a company referred to as ‘Phantom Investments,’ which has the purpose of investing in the credit card company Jaja, where Bellis serves as the ultimate parent company.

However, it fails to mention that Jaja has a subsidiary, named Pana Finance, which, in the past year, has secured significant debt funding via an offshore bond market in Guernsey.

Last year, Bellis committed to investing tens of millions of pounds into Jaja, which had struck a deal to offer credit cards for Asda, enabling customers to receive £20 spending money at the supermarket upon signing up.

Asda said the purpose of the letter was to set out the relationship of the various companies that sit above Asda Limited and that Phantom Investment Company’s equity investment in Jaja Finance was disclosed.

The errors in the letter come on top of an admission by Mohsin Issa that he also mischaracterised the Bellis ownership structure when he appeared before MPs in Parliament back in July, when he seemed to confuse which was the parent of three holding companies that together own Asda.

Mohsin told MPs he agreed with the suggestion that that Bellis Finco, which is the company that owns Asda, was itself owned by Bellis Acquisition Company, Bellis Acquisition Company 2 and Bellis Acquisition 3.

I bet he didnt write that letter.

I bet he didn't understand anything in that letter.