Adams Retail Failure not the fault of UK recession
Like the collapse of Woolworths and EUK, the recession has added to the failure of the business but it is not the main reason for its failure.
Adams like Woolworths have been in trouble for years trying to keep up with tough competition from Next, Gap, M&S, Tesco and Sainsburys.
As a father I asked my wife this morning, when was the last time you shopped in Adams? Never she replied – If I need baby clothes I pick them up in Tesco whilst doing the weekly shop or wait until the Next Retail sale where I can bulk buy items for the year. Adams is to expensive she continued, why pay £10 for an outfit that may only be worn twice when I can get the same quality elsewhere for £3.
This is the 3rd time is as many years that Adams has gone to the wall, being re-financed in 2005 and bailed out of Administration by a Northern Irish business man in 2007.
The chances of Adams survival this time are very slim, If Woolworths and Zavvi are having problems finding a buyer, Adams has no chance as it is not a ready to go business but rather a new buyer will have to overhaul the entire outdated brand and supply system and with over 2000 jobs hanging in the balance, Retail is definatly changing.
SNAP!
Yep I had asked my wife this question as well. These companies are not falling because of the recession. They have been rubbish for years. This recession might well be the first decent cleaning up of the high streets in decades.
It is true that Recessions ‘clean-up’ messy businesses with poor management and bad business plans, the only problem with this is that innocent people get hurt in the ‘clean-up’
Only solid businesses with good products and great management will survive the down turn.
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