BGN Entrepreneur

As the customers are busy dealing with the credit crunch and shopping less, many businesses in the high street are being greatly affected. As analysts said, downgrades of different businesses were almost certain
Due to the marked downturn in demand in the past 3 months, it seems that Home Retail Group would have no choice but to cut the carrying value of its DIY chain. The group plans to write down the Homebase’s book value by about £700 million, as it suffered an 8.3% dip over the past three-month period.
The group also sent a shudder through the stock market on September 11th 2008, by revealing the worst sales drop ever since 1999 at Argos, as sales of furniture had dropped by up to 20%.
Given the present tougher economic climate and the slim chance of a significant recovery at the business over the next two years, chief executive of Home Retail Group, Terry Duddy, said there was every chance of one or two corporate collapses in retail in 2009.
As a result, the shares in Home Retail fell by more than 5% to 228¾p.

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