Today in the City - 5th November 2004
 
 
 
 
 
 
 
 
 

COURTS PRICE SLUMPS AFTER LOSS WARNING

               
Troubled home furnishing firm Courts saw its share price slump as much as 40% after it warned losses would be much worse than expected. In its second profits warning in as many months, Courts sad a fall in customer numbers had sent like-for-like orders down by a fifth. It is now in talks with lenders following the gloomy update, which is the latest in a string of problems to hit the firm.
Nick Bubb, retail analyst at Evolution Securities said:
"As far as Courts is concerned, it's going from bad to worse in a market that isn't great"
In the eight weeks since the August Bank Holiday, orders were 20% lower, meaning that the UK  would be loss making in the second half
               
So what does that mean to the consumer?
 
It effectively means that if you place an order with Courts and you pay a deposit to Courts - you may never see your money again if Courts go into liquidation.
They have no assets to speak of and they owe millions to their lenders.

So just be warned - Think before you pay as it could be you who loses out in the end

 

               
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