We are at the beginning of the beginning of the Recession

Good news and bad news on the high street in Brighton and Hove. The threat hanging over Sussex Stationers has been lifted, at least for now. Unfortunatelythere will be a large number of job losses. Already 30 redundancies have been made by private equity firm Endless who bought the chain from Easons earlier this year.

Already the high street has lost Woolworths and Zavvi. There is another large high street chain, with an large outlet in Churchill Square, that is on a knife edge. Telephones have been cut off, staff have not been paid and the bailiffs have called. I give this chain no more than 2 weeks. Its loss to Churchill Square will be serious.

We are all in a state of denial. The recession has yet to bite. Two things have held back the real impact. Firstly, the impending general election has ensured that the extent of cuts has yet to be revealed. The public sector has been protected, but all will change after the election.

The second is the determination of governments across the world to ensure that there is a supply of cash. This has allowed limited liquidity to be sustained, but governments are running out of money and national economies will, in the next 12 to 24 months really hit the buffers.

The future isn’t Orange, the future is grim and getting grimmer. We are not seeing the green shoots of recovery.  We are seeing the beginning of the beginning of the recession.

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One Response

  1. Presumably you’re talking Borders, given this article in the Bookseller:

    http://www.thebookseller.com/news/93753-auditors-express-fears-over-borders-uk.html

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