Who owns Wheelock, the Borders place?

[johnny333]

Was reading a story about the problems Borders was facing. They were paying a monthly rent of $541,000/month
That's just crazy.

Was wondering if the landlord was one of the GLCs

 

[mollusk]

wah 541k per month..no wonder they went bust...they should have rent out at mustaffa centre

 

[johnny333]

Here's the article.


Borders placed under judicial management
by Tanya Fong
04:46 AM Sep 07, 2011
SINGAPORE - As Borders was placed under judicial management for six months, the High Court heard yesterday that the bookstore had taken several steps to avoid its current financial situation.

The measures included negotiating the sale of Borders bookstore or its assets to Popular Holdings and seeking lower rents from its landlords at Wheelock Place and Parkway Parade.

An affidavit by Mr James Peter Webber, a Borders director, which was tendered in court yesterday, detailed Borders' woes since 2008. Mr Webber said the bookstore negotiated with Everbilt Developers to halve its rent at Wheelock Place from S$541,000 a month to S$275,000, as well as with Prime Asset Holdings to reduce its rent in Parkway Parade from about S$127,000 plus 9-per-cent of Borders' sales in that mall per month to S$78,000.

Negotiations at Parkway succeeded, but the deal at Wheelock fell through, resulting in a hurried shut down of the bookstore in Orchard a fortnight ago.

In addition, Mr Webber said Popular Holdings was considering a deal to take over Borders' Wheelock lease which would have ended in January 2013, buy over its current stock in the Orchard store, as well as the fixtures and the exclusive licence to the Borders' brand for S$2.

This too, fell through last month as Borders had due financial obligations - including the threat of re-possession for a rental payment of about S$572,100.

The company is also in negotiations with REDgroup Retail - its parent company in Australia - to obtain a formal release from a A$2.5million (S$3.2 million) loan REDgroup gave Borders. Borders had asked for the loan due to the global financial crisis and the digitisation of books, music CDs and movies.

But Borders' fate was inextricably tied up to REDgroup's, as the latter had become insolvent and was placed under voluntary administration in Australia in February this year.

According to court documents, this resulted in Borders "no longer being able to leverage on the economies of scale, established relationships or general advantages of operating as part of a larger group, as it previously had."

The bookstore currently has an inventory worth about S$2.76 million which ordinarily would sell for S$4.5 million.

Mr Webber said if the company is wound up, it may only receive S$1.4 million from a "fire sale".

As a clearance sale at the Singapore Expo ended yesterday, final proceeds from the five-day event were not immediately available.

But Borders' appointed judicial manager, Mr Timothy Reid, said: "In my preliminary view, the sales achieved have been substantial and are resulting in significant cash returns. The sales have also helped lessen the warehousing costs which were necessarily incurred."

Mr Webber felt a judicial management order would give Borders "breathing room and time to properly seek out deals with investors". Once under judicial management, Borders cannot be sued by any of its creditors.

Mr Reid said Borders will be looking to get REDgroup to assign their rights to Borders' debt so that the latter's employees, gift card holders and other creditors can be paid.

There are about 1,260 gift card holders with some S$400,000 in credit with the bookstore. Borders is also hoping to get back some of the S$1.8 million in rental deposits from Wheelock and Parkway Parade.

 

[Ramseth]

Li Ka Shing owns Wheelock Place.

 

[Alamaking]

Own by Marco Polo Development, they own Grange Residences and Ardmore Park

 

[johnny333]

Even with the reduced rent I wonder if any bizness could survive could survive with rental of $275,000 a month. That doesn't even include the wages of the employees.
Only have to look at Shaw Centre that's opposite, 90% of the stores there are vacant.

I don't think small bizness in Spore is sustainable, even for large chains it's a struggle.

 

[Cestbon]

Rent killing Singapore.
Those shop can survive in Orchard Road really need a good sale. Each square foot is average more than $20/month for rent only.

 

[1sickpuppy II]

Yah lor even those hobby shops that I buy my plastic models have to close and move to industrail estates and rent place to sell their models :p

 

[Forvendet]

Li Ka Shing owns Wheelock Place.

Should be the estate of the late Sir YK Pao, not LKS.

 

[Unrepented]

I still go to the orchard store, morgan at katong, another one a shaw center, and sunshine plaza. Any additional sources?

Yah lor even those hobby shops that I buy my plastic models have to close and move to industrail estates and rent place to sell their models :p

 

[johnny333]

Rent killing Singapore.
Those shop can survive in Orchard Road really need a good sale. Each square foot is average more than $20/month for rent only.

When even car companies like Mazda can't survive in Spore, I don't know what bizness will be able to survive

I was taking a look at the Isetan Supermarket & looking at the imported Japanese melons selling for $25, grapes selling for $90+ ,..I wonder who can afford such prices
I know that Japanese produce are expensive but even they are affected by the recession.

I then went to the Daiso store at Ion where everything is sold for only $2. I wondered how a store selling only $2 can survive in the Orchard Rd area They've now got many branches around Spore.
I remember that some Sporean tried the $1 dollar concept & that went bust.

 

[Confuseous]

There was a desert stall guy who gave up at the 4th floor food court in Raffles City. He told me the rent was $15K a month. Possible? I don't know the market.

 

[Cestbon]

When even car companies like Mazda can't survive in Spore, I don't know what bizness will be able to survive

I was taking a look at the Isetan Supermarket & looking at the imported Japanese melons selling for $25, grapes selling for $90+ ,..I wonder who can afford such prices
I know that Japanese produce are expensive but even they are affected by the recession.

I then went to the Daiso store at Ion where everything is sold for only $2. I wondered how a store selling only $2 can survive in the Orchard Rd area They've now got many branches around Spore.
I remember that some Sporean tried the $1 dollar concept & that went bust.

Mazda cannot survive due to fuel price and also COE. Now everyone go for German made car because COE price up make no sence to buy cheap car eg. China COE 3 time the car price.

Daiso $2 of can survive because the average cost of the item is 50cent. So they must go for quantity.

I dont understand why there are stupid people buy electronic product in Lucky plaza. Me long time never shopping in Orchard. Only go there for drink/eat only.

 

[Khun Ying Pojaman]

Borders should stop selling books. Look at HourGlass, small shop, small space but sell expensive items, high profit margin, high turnover.

 

[Gallego99]

There was a desert stall guy who gave up at the 4th floor food court in Raffles City. He told me the rent was $15K a month. Possible? I don't know the market.

One of the Satay stall at Clark Quay told me that his rent per month is 22-23K. The figures were simply mind boggling!! I can understand if you're in a high end fine dining set up but satay??? C'mon get real.

 

[shOUTloud]

One of the Satay stall at Clark Quay told me that his rent per month is 22-23K. The figures were simply mind boggling!! I can understand if you're in a high end fine dining set up but satay??? C'mon get real.

22-23k? Even if one satay stick is $1 profit, he still have to sell 22k/30 = 730 sticks a day! How is that possible?

 

[Cruxx]

22-23k? Even if one satay stick is $1 profit, he still have to sell 22k/30 = 730 sticks a day! How is that possible?

Maybe the purpose of the business isn't to make profits? Sinkieland is the money laundering hub of Asia after all.

 

[Ramseth]

Own by Marco Polo Development, they own Grange Residences and Ardmore Park

Should be the estate of the late Sir YK Pao, not LKS.

I think that you two are right. I was a bit confused with those Hutchison Whampoa stuff. Apologies.

 

[johnny333]

I dont understand why there are stupid people buy electronic product in Lucky plaza. Me long time never shopping in Orchard. Only go there for drink/eat only.

I think it's only the tourists who shop at Lucky Plaza

I find it strange that the filipinos congregate in Lucky plaza. I see groceries stores, freight forwarders, etc. How can those businesses sustain their business in a high rent district
Is the Spore gov't giving these businesses some kind of tax holiday or assistance

 

[Alamaking]

I think that you two are right. I was a bit confused with those Hutchison Whampoa stuff. Apologies.

MPD was one of my client, went up to their office many times at Wheelock, many milfs there, super bitchy place, kenna sabor upside down. LOL