House Of Fraser "deal"

[CrapAtCryptics]

The people who are allowing the new owner should hang their heads in shame for letting him have the deal without covering the existing pension bill. Its also reported in the paper today that they wont be honouring gift vouchers after the changeover. What an utter disgrace.

[dannyk13]

Big business at its worst.

[Old_Geezer]

They get away with it because the alternative is administration.

I think there's an argument for making it a legal obligation to take on debts as well as assets though. Otherwise all they really done is bought the assets in a "fire sale". May as well have gone bust and be done with it.

[murraymints]

better they all lose jobs and have nothing ?

[murraymints]

very sad times for Edinburgh..2 of the largest ,oldest, and much loved stores..Binns ..meet you under the clock....and Jenners are doomed... very very sad

[Buenchico]

House of Fraser was already in administration when Mike Ashley made an offer to buy it. That meant that
(a) if no offer had been forthcoming all of the stores would have had to close (with the loss of many jobs) ; and
(b) the pension scheme was automatically transferred to the Pension Protection Fund. (That happens to increase the chances of a firm in administration being able to come out of it, thus protecting jobs).

While existing gift vouchers can't be honoured directly in House of Fraser stores, customers simply need to post them to the company's head office (27 Baker Street, London W1U 8AH) to receive new gift vouchers in exchange.

[ToraToraTora]

what are you on about, they are honouring gift vouchers and the pension is in the pension protection scheme, 0 out of 2! PMSL

[gingejbee]

1. Billionaire Mike Ashley IS Sports Direct....
2. TTT really needs a visit to a urology clinic.

[Canary42]

Capitalism at its finest.

[Old_Geezer]

https://www.ft.com/content/3fc045de-9e35-11e8-85da-eeb7a9ce36e4

"PPS pays out less"

[fiction-factory]

Tom McPhail who is a regular 'expert' on pension matters on BBC was on the Lunchtime Money Martin Lewis thingy today and explained that the pension fund was in a pretty good position and pensioners had little to worry about.

[Old_Geezer]

Then no excuse for not taking it on.

[fiction-factory]

The PPS can only pay 90% in some cases but generally deals are done that makes it close to or at 100%, and the signs are that it's unlikley that there will be an issue in this case, according to Tom McPhaill

[Peter Pedant]

// They get away with it because the alternative is administration. //

OG as s/o once so wisely said: ( about Virginia gun laws I think) the law is the law....and then shrugged and clucked regretfully

HoF went into admin and the admin were appointed. The section of law that applies then is that if there is a buyer for the business ( = good a lot of the time ) the pension liabilities of the administrated co stay where they are -with the admin and come under the Pension Protection Fund which routinely pays out 80% - even of current pensions ( oo-er-Mrs!)

If Mike Adhley had bought the co before it went into admin he would have got everything inc the pension fund

You may think he therefore waited as the little fellow was probably aware of the rules - you may think that I couldnt possibly comment

[Peter Pedant]

// and the pension is in the pension protection scheme, 0 out of 2! PMSL//

o god cathetise him someone ! The PPS pays out on average 80% of the liability. so take off your happy inane smile 3T and look glum

[fiction-factory]

https://player.fm/series/5-live-consumer-team-with-martin-lewis-1301410/pensions-expert-tom-mcphail

It had to go to PPS as an interim thing. Discussions will now go on over the next few months and the regulator will look at whether Ashley is trying to avoid any obligations. . Tom McPhail is optimistic. Have a listen.

[Bazile]

He says he has always wanted to own a department store

He's promised to make it the Harrods of the high street .
hmmm - are there enough punters out there on the high street , prepared to pay Harrods prices ?
We will see

[fiction-factory]

PP- the PPF site says if you ares till employed you will get at least 90% (I can't see an 80%) if you aren't yet drawing it. Existing pensioners still get 100%.