TodayWhy could Poundland go bankrupt while buyers line up for its shops?
The answer, at the end of this programme.
Good morning.
It's Friday, the 30th of October.
This is The Max Noble Podcast, the weekly edition.
Business news from the companies on Max Noble's warning list, and his column.
Every fact has a source.
On today's programme: 2 new filings, from Poundland and BHV Marais, the latest on Thames Water and Casas Bahia and Mercer International, and the story of Poundland.
BreakingFirst, our top story.
A notice to appoint administrators has been filed for Poundland.
On Thursday afternoon a notice reached the High Court in London, giving Poundland ten working days of protection from the people it owes.
On Thursday 29 October, early in the afternoon, a notice of intention to appoint administrators was filed for Poundland at the High Court.
Reported by Reuters on 29 October, and the same day by RTÉ, ITV and The Guardian.
All shops remain open and trading as normal, the company says.
No administrators had been appointed at the time of writing, early on 30 October.
AlixPartners is reported as the proposed administrator.
Reports differ on whether the directors or the owner filed the notice.
Max Noble's view. Poundland says every shop is open as normal. The next ten working days decide how many open at Christmas.
Also in court this week.
BHV Marais, the Paris department store, has asked a court for a rescue.
In its 170th year, the store opposite Paris City Hall asked a French commercial court on Tuesday for a redressement judiciaire, a court-led rescue.
On Tuesday 27 October, the head of BHV Marais told Le Figaro that the store was going to court.
Confirmed by its management to Le Figaro and AFP on 27 October, and reported the same day by Reuters, FashionNetwork and Sortiraparis.
The store stays open, the company says.
No court had ruled at the time of writing.
AFP named the commercial court in Lyon; Sortiraparis reported a hearing in Paris on Friday 30 October.
DevelopmentsThis week on the list.
Thames Water, the water and sewage group.
Thames Water has not filed.
Its creditors were due to vote on 29 October on £2.4bn more emergency money; no result was public early on 30 October.
On the Max Noble Meter, Thames Water moves up from 75 to 80, into warning.
S&P cut its rating to CCC-, with a negative outlook, on 27 October.
In Max Noble's view, the vote decides its next year, and the result is not yet public.
Max Noble is watching the result of the creditor vote.
Also on the list, Casas Bahia, the home appliance and furniture shops group.
A São Paulo court let its court-led rescue go ahead on 21 October.
It wants to renegotiate about R$17bn of debt.
Brazil's best-known home store chain asked for a court-led rescue in August.
The court has now let it begin, which is not yet approval of a plan.
Max Noble is watching whether creditors back its rescue plan.
Also on the list, Mercer International, the pulp and wood products group.
Mercer International has not filed.
It did not pay about $25.8m of interest due on 1 October, and its 30-day grace period ends about 31 October, by Max Noble's count.
TokenPost reports it may pursue Chapter 11.
Missing an interest payment is one of the clearest warning signs there is.
Its auditors’ doubt about whether it can carry on has also been reported, and the next days show whether talks end in a deal.
Max Noble is watching whether a deal with noteholders, or a Chapter 11 filing, comes as the grace period ends.
The listThe rest of the list, in brief.
Internationally, sonnen, at 95: in a court process.
GiFi, at 95: in a court process.
Galeria, at 95: in a court process.
Homeplus, at 95: in a court process.
Tongaat Hulett, at 95: in a court process.
In Denmark, Autismetilbuddet Haslev ApS, at 100: declared bankrupt.
HAMMEL Møbler af 2009 A/S, at 100: declared bankrupt.
Hamiconsult, at 100: declared bankrupt.
The storyAnd finally, today's story.
Poundland.
Thursday afternoon… London.
A notice reaches the High Court.
Poundland now has ten working days… protected from the people it owes.
Picture Steve Smith… at a market stall in Bilston.
That one-price idea… became a name every Briton knows.
This autumn… its bosses said sales were rising.
Then the owner turned down an offer for the whole chain.
Rivals, reports say… want the pieces.
Poundland always sold things… one small piece at a time.
Now it may be sold… the same way.
A buyer for the whole… could still save it.
So. Why could Poundland go bankrupt while buyers line up for its shops?
Max Noble's answer. The shoppers came back. Most buyers came for the parts.
Is your company worth more to a buyer… in pieces… than whole?
Take the Power Test… at maxnoble.com.
The lawFrom the book.
Law number 21.
Sell the Service Before the Box Gets Cheap.
Wildpoldsried, 2010.
In a village in the Allgäu, two men founded a company to store the sun in a box.
By 2016 its customers could share their spare solar power with one another.
In 2019 Shell bought the whole company.
At home, though, it still lived mostly on selling boxes.
Then Asian makers learned to build the box for less.
In 2024 its German company’s sales fell from about €264 million to about €78 million.
On 22 October 2026 it filed an insolvency application.
That same day, its American arm, built on power-plant services, said its sales had roughly doubled.
A box that earns once is, financially speaking, a beautifully engineered doorstop.
Sell the service before the box gets cheap.
From the book.
Law number 22.
Take the Small Slice While It Still Exists.
Johannesburg, July 2022.
For seventy years, shares in Tongaat Hulett, South Africa’s biggest sugar maker, had changed hands on the exchange.
Then the annual results did not arrive, and trading stopped.
That October the company entered business rescue.
In January 2024 its creditors backed a plan that turned their debt into shares, leaving the old owners about 2.7%.
In August 2024 the owners voted the share issue down.
The plan moved to its second option, a sale of the businesses.
On 12 October 2026 the exchange said the shares would be removed, and that no value was expected for shareholders.
Two point seven percent looks small until you set it next to nothing.
Take the small slice while it still exists.
From the book.
Law number 23.
Guard the Brands That Bring the Crowds.
Paris, the early 1850s.
A young man named Xavier Ruel sold goods from carts, and he chose the spot near City Hall because it paid best.
By 1856 he had a shop on the rue de Rivoli.
For 170 years, the great brands came to his store.
On 1 October 2025, its owner announced a permanent Shein store.
That month, Dior and Guerlain stopped selling there.
By May 2026, small brands were taking the store to court over unpaid bills.
On 27 October 2026, in its 170th year, BHV asked a court for a rescue.
A department store sells borrowed names.
Without them, it is a very handsome car park.
Guard the brands that bring the crowds.
This week's questions for your company, from the Power Test.
Law No. IIIMax Noble's question. Do you earn most of your money from a product a rival could make cheaper?
Law No. IIIMax Noble's question. If lenders offered your owners a small share to save the company, would they refuse?
Law No. IIIMax Noble's question. Have you made a big move this year without asking the partners your customers come for?
Take the test in two minutes at maxnoble.com slash test. The full chapters are in the book, at maxnoble.com slash book.
CloseThat's The Max Noble Podcast, the weekly edition.
Understand business.
Better.
The full list, the column, and every source, at maxnoble.com.
The Max Noble Meter is Max Noble's opinion of how close a company is to bankruptcy.
It is not investment advice.
This narration is an AI voice.
Back on Monday, at six.
— Max NobleThe full case, with every source, is one click away.