A Bit of Fun Sainsbury's no go on new builds

[Ayrshire Blue]

We have borrowed millions, around 10 million the last count, it wont just be written off.

They've walked away from a development recently, can't remember where it was, I'll try and dig it up. But they walked away from over £7m they had put into the development.

**** in the ocean for them!

 

[Firestorm]

The loans made were not as far as I understand it payments for the ground, they were just standalone loans to be repaid.

Plus of the 10 million debt Id imagine that Sainsbury would not be the debtor for the whole lot.

Its all guesswork and no one knows the impact, but it wont be nice for SUFC however it panned out if Sainsbury were to pull out.

Iirc the were loans secured on RH not advance payments.

 

[Clinton Baptiste]

AFC Southend managed by Drewe Broughton, playing games at Priory Park, thats the future!

 

[Firestorm]

They've walked away from a development recently, can't remember where it was, I'll try and dig it up. But they walked away from over £7m they had put into the development.

**** in the ocean for them!

They have allowed 92m in contingency for those they are walking away from

 

[dannypav]

Don't worry , they're rolling in it.

http://news.sky.com/story/1167846/sainsburys-first-half-profits-hit-433m

 

[londonblue]

The tweet is referencing this on the Sainsbury website.

http://www.j-sainsbury.co.uk/media/...esults-for-the-28-weeks-to-28-september-2013/

The review of property is in there. Fingers crossed that Roots Hall is not one of the sites.

At the end of that article there is a dial-in number for their conference call. I would imagine that CP will participate, and ask outright if Roots Hall is still a goer...

...Or maybe he won't.

 

[ooh-andy-ansah]

We have borrowed millions, around 10 million the last count, it wont just be written off.

Have we ? I think you will find that SUFC hasn't borrowed a penny from Sainsbury's. Best case scenario is that they finish off RM's web of companies and take him down. We go into admin and try and find a new owner, i've long suspected there are people waiting to step in. Why do you think RM has done everything possible so far to avoid admin ?

 

[Jam_Man]

Have we ? I think you will find that SUFC hasn't borrowed a penny from Sainsbury's. Best case scenario is that they finish off RM's web of companies and take him down. We go into admin and try and find a new owner, i've long suspected there are people waiting to step in. Why do you think RM has done everything possible so far to avoid admin ?

The parent company borrowed from Sainsbury and we borrowed off of the parent company. We dont owe Sainsbury, but we do still owe 10 million.

So in theory if Sainsbury did write off the debt I wonder if Ron even has to write it off for SUFC, we could be in the situation he owes nothing, but we still owe him....

People stepping in to take over SUFC doenst help when Ron still owns the stadium, and if he was taken down then the stadium could be sold to finance those debts surely.

 

[LennySUFC]

Potentially very very bad news, but we shall see.. Doubt the pizza man on the corner would be too happy if he had to sell up for no reason..!

Could another supermarket take the land if sainsburys do pull out? Morrisons, Asda, Lidl, Aldi all potentially taking a decent area?

 

[Razam]

If this does mean Sainsburys are pulling out, then considering staying at Roots Hall is not a long-term option, I'd assume there would be only 3 options for Ron

1. Stay & take the club down with him (unlikely)
2. Sell up & let the survival of Southend United be someone elses headache.
3. As planning permission (expired?) is already there for a Supermarket at Roots Hall, he could invite other supermarkets to take-over from Sainsburys (Tesco, Asda, etc.) and still be able to create Ron-World

 

[ooh-andy-ansah]

The parent company borrowed from Sainsbury and we borrowed off of the parent company. We dont owe Sainsbury, but we do still owe 10 million.

So in theory if Sainsbury did write off the debt I wonder if Ron even has to write it off for SUFC, we could be in the situation he owes nothing, but we still owe him....

People stepping in to take over SUFC doenst help when Ron still owns the stadium, and if he was taken down then the stadium could be sold to finance those debts surely.

It could be sold yes but if Sainsbury's don't want to build a new store there could be a proper developer ready to take on the project. Isn't there a covenant protecting us regarding building not allowed unless we are relocated ?

FF will never happen under RM. If the project is viable as housing then I think there will be companies lining up to take it on, proper companies not mickey mouse inc. that we have now.

 

[ooh-andy-ansah]

Why can't we ground share with Colchester ? If Palace and Charlton did it why can't we ?

 

[LennySUFC]

Why can't we ground share with Colchester ? If Palace and Charlton did it why can't we ?

Need i say more?

 

[Jam_Man]

Why can't we ground share with Colchester ? If Palace and Charlton did it why can't we ?

Palace and Charlton have never ground shared with Colchester :smile:

Problem is if we ever got to a position we didnt have a ground then when could we ever expect to buy one ? That would be pretty disasterous if we ever got in that position I think.

 

[onceknownasrab]

Chill. FF is going to happen and so is the Sainsburys store at RH. No sweat.

 

[Ricky Otto]

AFC Southend managed by Drewe Broughton, playing games at Priory Park, thats the future!

I'm not sopporting a club managed by that donkey

 

[Fish]

Need i say more?

That's quite funny.

 

[united we stand]

Wouldn't surprise me. Tesco have already done similar and are now no longer building their 'super' store on the old b&q site in central Southend. Therefore, Sainsbury's no longer have to compete with the massive footprint that that store would bring and could decide that what they have in central Southend is sufficient given the fact that the opposition have already pulled out.

If upon review Sainsbury's do decide to pull out of the Roots Hall development we are in deep do-dos!

:unsure:

I understand what you are saying, but Sainsbury's have wanted this for 20 plus years,way before anyone ever dreamed that B&Q would move out.

None of us know the hard facts, we just have our opinions. I used to be confident because at one point it was said that Sainsbury's believed this would be their most profitable store in the country- but that was a few years ago and things are changing.

The below reports from Sainsbury and Tesco's show that the growth is in on line grocery shopping (now 10% of all food purchases and expected to double in next 5 years- according to the below report), and smaller shops. The reports show that even Tesco's is having to be quite radical in its thinking of how to use its floor space in some larger stores.

One example proves nothing in itself, but its interesting to note that the newish small Asda in Rawreth sometimes has higher sales than the far larger superstore in SWF and is surpassing all expected sales targets

 

[ooh-andy-ansah]

Need i say more?

This great man may have to be sacrificed in order for the club to survive :smile:

 

[united we stand]

there will almost certainly be provisions in place in terms of compensation if Sainsburys pull out..

Preciously , none of us know the details, for all we know we could end up with compensation for them walking away in excess of what they have lent us so far.