Is this building in trouble?

[Hots on 10]

There is a company which is big in the US and has a growing amount of stores around the world including the uk.

 

Overall the company is doing great but if a particular UK store had an annual net financial figure of minus six hundred odd thousand after ten years of being open, would that be sustainable?

[achorste 10]

There is a company which is big in the US and has a growing amount of stores around the world including the uk.

 

Overall the company is doing great but if a particular UK store had an annual net financial figure of minus six hundred odd thousand after ten years of being open, would that be sustainable?

 

I assume you mean a yearly net loss of £600k? If the parent company wants to support it then there's no problem, it's for the company to decide if there's benefit to having that store open. It may be a loss leader, or provide support services that enable greater earnings elsewhere.

[tzijlstra 11]

There is a company which is big in the US and has a growing amount of stores around the world including the uk.

 

Overall the company is doing great but if a particular UK store had an annual net financial figure of minus six hundred odd thousand after ten years of being open, would that be sustainable?

 

Is completely dependent on the company and its tax-situation.

 

Full break down would take too much, but let's say this particular store turns over 20 million a year, it loses 650,000, that could be a strategy to off-set another store that is turning over 50 million and profiting 650,000. The company needs the turnover because that generates profit in its home-country (the US) as most goods are imported from there. Ergo - it will leave the loss-making store to operate as the profits over that 70 million are not generated in the UK but in the US.

 

Hope that makes sense, can elaborate if needed.

[pintor 32]

Are you talking about Toys R Us?

[nowt2pctoday 10]

Are you talking about Toys R Us?

 

figure way too small for toys r us

[Guest]

Are you talking about Toys R Us?

 

OP said the building has been open for ten years. Toys R Us have been there for donkeys years.