Play.com to close retail operations

[dfmorgan]

Play.com are apparently closing their retail operations in March according to this report here, they will concentrate on their Marketplace operations.

A pity as I've been a customer of theirs via the original Play247 through Playusa to the current incarnation, although their prices have been less competetive in the past couple of years so fewer orders were placed with them.

[Piffi]

Wow, thats a shame really. I've used play.com for many years aswell.
They have had real good prices and free delivery to outside UK etc.
But after they were bought by those japanese people i stopped using them.
They messed up the system too badly. Now i think amazon is much better.
But its a shame that they are closing their retail operations really.

[samuelrichardscott]

Good. Ever since Rakuten took over they have gone from being one of the best around to a joke not far off the level of Zavvi. The job losses suck though I am glad they are closing some of these tax loopholes.

[samuelrichardscott]

and yes, Amazon are having these loopholes closed also. Play are just spitting out the dummy saying they can no longer compete. Good riddance.

[Piffi]

Before those Japanese guys bought play.com, i almost only used them.
But after play got their new owners, i have only used them once or twice
And thats a shame really. I really liked them before. Was one of the better in the biz.

[Achim]

I think play-asia.com is related, too? I used thm rarely, but then usually or stuff I virtually could hardly find elsewhere...

[samuelrichardscott]

I'm not sure it is.

Rakuten did buy Priceminister, buy.com and ozon.ru though last year - massive sites in their respective countries. They only paid £25m for Play despite a £450m annual turnover so I think they have always had plans to turn it into a priceminister type site and are using the tax reasoning as an excuse to proportion blame elsewhere.

[Piffi]

Maby, something is fishy about the whole thing. After Rakuten bought it everything went downhill (IMO)
But what i dont understand is why they sold it for "only" £25M, when their turnover is £450M. Dont get that

[Mustrum_Ridcully]

It's not the turnover that makes the price for a company, but the "Return-on-Sales" in combination with the annual profit.

EDIT:
That's when an old rule comes into play too:
Selling is easy, every idiot can do it.
To earn money with it is something completely different.

[samuelrichardscott]

Profits for the year 2010-2011 were £57m net according to companies house report. A few UK news sites have posted new stories about Play going this way as they are the UK's third biggest e-tailer.

[Piffi]

Profits for the year 2010-2011 were £57m net according to companies house report. A few UK news sites have posted new stories about Play going this way as they are the UK's third biggest e-tailer.

Something seems off in my book. With that huge profit(s) and stuff.
Just dont see why they would sell if for "only" £25M. But it doesnt matter i guess
And we'll never find out either i guess.

[Mustrum_Ridcully]

Profits for the year 2010-2011 were £57m net according to companies house report.

In this case 25m is a real bargain (at least if it was a 100% buy-out).
I bet Rakuten didn't have any difficulties in finding a bank to finance this.