HMV A credit insurance expert writes…
From my good friend Martyn locke…very good points
HMV the credit insurers bite..
http://www.bbc.co.uk/news/business-12225076
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2011/01/hmv_it_gets_worse.html
Oh dear. Now we are talking about the new Woolworths ? Or are we?
You may well recall that withdrawl of credit insurance cover finally brought Woolworths to its knees (and did you know that their fine head office building in Marylebone road is now being taken over by a ….. Bank?). So will the same happen to HMV?
Well there are a couple of thoughts that spring to my mind and this is an industry I know very well….
Firstly, the reduction of the limits might not be as difficult for HMV as indicated. The peak period is over and whilst we do not have the exact details, it may be that suppliers can operate wihin reduced limits for the next few months (although easter is suprisingly another busy period for sales).
Second, as alluded to in various news stories, the suppliers will be desperate not to lose the only major specialist high street outlet for music and video. There is a far greater degree of mutual dependency than with Woolworths and its suppliers. A lot of music and DVD sales are impulse and frankly you need the high street presence to make that work.
So maybe the suppliers will carry the risk. But who is taking the risk? It has been reported that the distributors are now insisting that without insurnace cover the labels must commit to carry the bad debt. To my mind this is disgraceful but having worked in that business, I am not greatly suprised. I would also suggest that if the distributors are all singing from the same hymnsheet on this proposal (or whatever it could be called…I have a word or two) then maybe this is for the men from the OFT? Will be interesting to see where this goes…
More comments and updates to follow…
Download my articles…
Just right click on the links below for my articles in Accountancy magazine (on outsourced credit control) and Better Business magazine on credit vetting
enjoy!
Thanks to CIMA for allowing me to present…
For a full hour and a half on “the wider aspects of credit management”. Really enjoyed and a good turnout of around 50.
Holiday Inn Gatwick was a very nice venue too…
Practice makes perfect with presentations and I felt a lot more relaxed than when presenting to the ACCA (who I am returning to in April), but I was reminded yet again of a few points
1. Keep Powerpoint to no more than prompts. Do without it of you can. People listen or watch but rarely do both at same time. I want the audience to listen to me rather than stare blankly at some pointless pie chart
2. Use anecdotes. I find they come to mind when im talking and theres no real need to overrehearse. An audience always prefers to hear examples (which are far better with a humourous edge) than theory
3. Watch the audience and if they are shufflng in seats, yawning or reading the Blackberry, move on ….
Greedy IPs?
http://www.bbc.co.uk/news/uk-scotland-12132883
An MP has a bit of a blast at insolvency practioners? Is he right?
For once I will back away from a stromg opinion here but i think its probably raif to say that he does raise some very valid points.
Most credit managers have come across insolvencies which were not seemingly handled in the manner that might have been expected (I am being polite). One of the very worst examples I came across was by perhaps the proudest of the big four firms.
On the other hand, ive seen some handled in waht can only be described as a reasonably economic and efficimnt manner
Any opinions?
Further trouble at HMV
http://www.bbc.co.uk/news/business-12117510
60 stores to close and “trouble with the banks”. Shares down 20% too
There is a case study here and I will be expanding on this shortly…