Latest Rumours Sainsbury's no go on new builds

[flapjack]

I have heard today that Sainsbury's are pulling the plug on all new retail developments and taking a huge hit against this as well, not sure how this will affect the new stadium

 

[Pubey]

There is a tweet on twitter that says:

"Sainsburys says its reviewed property pipeline and "identified some sites where we no longer wish to build a supermarket". Taken £92m charge".

Doesn't sound like it's pulling out of every development it has lined up.

Chris Phillips re-tweeted it, and is looking into if it affects FF.

 

[Crowstone Crevette]

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:

 

[FarmdogSUFC]

Without meaning to sound drastic, this could honestly/will end us as a football club if one of the sites is Roots Hall.

 

[Jai]

If Sainsbury's pull out we are dead in the water.

 

[Pubey]

If Sainsbury's pull out we are dead in the water.

Indeed. Let's see what Chris Phillips can dig up...

 

[tommy tucker]

Why would sainsburys buy up the 2 electrical stores pay the guy to relocate then pull the plug on roots hall make very little sence . We will just have to wait and see rather than spread more fear about so called rumours .

 

[raynis]

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.

 

[SUFCFANS]

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

 

[Depor_Shrimper]

Hardly doom and gloom, the deal has been signed and it will be of no consequence to the the club or the FF development whether the supermarket is built at RH or not? Unless I've completely mis-understood the situation?

 

[Pubey]

Why would sainsburys buy up the 2 electrical stores pay the guy to relocate then pull the plug on roots hall make very little sence . We will just have to wait and see rather than spread more fear about so called rumours .

Sainos have a market cap of £7.8bn

Buying a few properties for a potential new store is a tiny drop in the ocean they have available.

It doesn't sound like a judgement on FF (or any other store in particular). It seems like a strategic change in how they're looking to invest in the future after a review of all their current expansion plans at the moment. As someone else noted, Tescos have changed their plans in Southend and FF is intrinsically linked to what Sainos' competitors do.

If they decided to pull out of the FF deal then it would be because they want to do something different and I doubt they'd lose much sleep about it. A couple of thousand angry Shrimpers might be able to make their voice heard though.......

 

[RHB]

Come on all, just take a deep breathe until CP has ferreted out a bit more detail. There is absolutely no point in speculating one way or another until more is known. Trouble is that would sod up a good 'no details, lets panic' thread wouldn't it.

 

[southendkid]

Even if there is no compensation wouldn't that mean we'd be able to stay at Roots Hall without having to give Sainsbury their money back?

 

[ldnfatso]

If Sainsbury's pull out we are dead in the water.

Indeed, and Ron might need to sell the Ronicopter and Benfleet Towers!

 

[Jam_Man]

Even if there is no compensation wouldn't that mean we'd be able to stay at Roots Hall without having to give Sainsbury their money back?

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

 

[Ricey]

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

Why won't it? They said they will be taking a hit on doing so. Depends what was written in the contract in terms of the money ploughed into the club.

 

[Firestorm]

Sainsury may well decide not to build a new store at RH , although I thought that the housing was covering the build cost. However they already have the site effectively so they could decide to develop it all for housing to make money.
My worry is that the tightening of the purse strings may lead to increased pressure for us to move out and the implementation of penalty clauses if we fail to do so

 

[shrimpled]

My worry is that the tightening of the purse strings may lead to increased pressure for us to move out and the implementation of penalty clauses if we fail to do so

My immediate concern also.

 

[chapperzUK]

Why won't it? They said they will be taking a hit on doing so. Depends what was written in the contract in terms of the money ploughed into the club.

Exactly, at the moment this is all guess work and no-one actually knows the full details.

Anyway, if Sainsbury's turn round and demand their money back then it wouldn't ruin the club as the money wasn't directly loaned to the club but another of the companies associated with the club.

 

[Jam_Man]

Why won't it? They said they will be taking a hit on doing so. Depends what was written in the contract in terms of the money ploughed into the club.

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.