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The Daily Meal. Click to find out! You did it. The franchise Jarvis bought in 1981 sits on State Highway M-43 just west of downtown Hastings. It went into administration three times, and during the final time in November 2013, 61 of its remaining 75 stores closed. Seeking justice for Lion Sleeps Tonight composer, The tragedy of the tuk-tuk driver who fled Covid. "I miss Borders, it did have a personality," says retail analyst Chris Field. Franchise Direct is a dedicated resource for those looking to start their own franchise business. "There was no real service - it was a horrible place," says Mr Field. .css-1xgx53b-Link{font-family:ReithSans,Helvetica,Arial,freesans,sans-serif;font-weight:700;-webkit-text-decoration:none;text-decoration:none;color:#FFFFFF;}.css-1xgx53b-Link:hover,.css-1xgx53b-Link:focus{-webkit-text-decoration:underline;text-decoration:underline;}Read about our approach to external linking. ... 2019, says Business Insider. Mobile phones retailer Phones4U shut its doors for good in September 2014, closing its entire estate of more than 700 outlets across the UK and costing 5,596 jobs. And, that’s why Neil went out of business. Crew raised prices and underwent expansion during years when consumers became more and more thrifty. Before this season, for example, the NBA's Seattle Supersonics became the Oklahoma City Thunder. It had 335 stores and employed 5,100 people, but sadly, in recent years it struggled with tough competition on the High Street from rivals such as Poundland and Poundstretcher. "He was a great market trader and had a good eye for what would sell, he spoke to the staff, but over time, that went away and it was left to run itself. The BBC is not responsible for the content of external sites. But not everybody manages to secure a rescue deal with their creditors, and in some cases, once-popular household names have disappeared completely from the UK's High Streets. A WarnerMedia Company. As an independent retailer, it relied on arrangements with EE and Vodafone to sell their services, but both pulled out of negotiations to agree fresh contracts. .css-14iz86j-BoldText{font-weight:bold;}The UK retail industry has been struggling heavily in recent years and many brands have been going into administration. and/or its affiliates. Its US business followed suit two years later, filing for bankruptcy. "Barratts didn't really stand for anything - they weren't the cheapest on the High Street. "It was heartbreaking, because consumers absolutely want to buy the best brand toys for their children," retail expert Kate Hardcastle told the BBC. However, the retailer collapsed in November 2013, after neck ties fell out of fashion with the more casually dressed Twitter generation, and Tie Rack succumbed to the twin threats of global recession and online shopping. Buying and operating a franchise can be a great way for an entrepreneur to get into business with a proven brand, business model, and marketing strategy. Privacy Policy. Video, When Greta Thunberg met Margaret Atwood... on Zoom, Covid: UK surge in cases an 'extreme concern', Brexit deal mentions Netscape browser and Mozilla Mail, Croatia earthquake: Five dead as rescuers search rubble for survivors, Covid: Sydney beach party sparks 'backpacker' deportation threat, Harry and Meghan say 'love wins' in first podcast from Spotify deal, Breonna Taylor statue smashed in California weeks after installation, Russia police arrest Covid-denying priest Father Sergiy, Covid-19: First vaccine patient has her second jab, Brexit: Landmark UK-EU trade deal to be signed, Pierre Cardin: French fashion giant dies aged 98, collapsed into administration in February 2018, a branch of Tie Rack in every High Street, It finally shut its doors for good in August 2018. Here's a look at some of the biggest names we've lost in the past decade and what went wrong. "They were infallible at one point. 1. Barratts Shoes was a shoe manufacturer and chain of High Street shoe shops, founded in Northampton in 1903. The retailer, which was 88 years old and had an estate of 163 stores, had been struggling with debts of more than £1.3bn, including a pensions deficit of £571m. Do Not Sell, Paste this link into your favorite RSS desktop reader, Full story: Dragged into a bankruptcy that isn't yours, 5 startups that are reimagining the world, 7 lifehacks to eliminate your holiday hassle, South Africa's first black female winemaker ready to go it alone, Want to clean up India? "And if you're online, you're in control and you can go from store to store online, as opposed to going to a single Staples store and finding out it doesn't have what you want and that you wasted a single journey.". Factset: FactSet Research Systems Inc. 2018. All times are ET. Let’s start with a basic definition of afranchise. This is NOT a franchise or business opportunity. She added that UK High Streets suffer from a "second-rate retail experience" where retailers don't bother to refresh their store design and infrastructure, often because they do not feel the need to compete with other retailers. © 2020 BBC. "Phones4U probably didn't appreciate all of the different customer bases out there, by focusing on just big contracted customers who were using their phones on a higher package rate. Its final branch shut in June 2018. These are some of the top opportunities for entrepreneurs looking to start a business focusing on business-to-business (B2B) services, such as business coaching, corporate insurance, staffing, business logistics, parcel delivery, printing fulfillment, and marketing/advertising. But in the 1990s and early 2000s, Barratts was hit by heavy competition from cheaper foreign imported shoes. "It was very convenient, as it was in a lot of travel locations and they could catch the people for which it was a distress purchase - the men who had left their ties behind, and women who would go out and buy a tie for their husband or boyfriend... but it was never going to be a survivor," says Mr Field. By Mary-Ann RussonBusiness reporter, BBC News. ", He blames the demise of Borders on Amazon: "People could suddenly buy from a vast range and they could get the book they wanted at a ridiculous price and they were willing to deliver it for free within 24 hours. 7 franchises that went bankrupt When these well-known brands went bust, franchise owners were left to soldier on with a tarnished brand. "There's no pleasure in it at all, so if you want the greatest convenience and the best price, then I'm afraid online does give you that," he says.   Franchise taxes, like income taxes, are usually imposed annually. "It was too geeky, too nerdy, too complicated. Turn trash into free Wi-Fi, Drones, robots, DIY toys shine at Toy Fair, She's recycling CO2 to reduce oil dependence. Video, Bodycam footage shows before and after Nashville bomb, When online meetings didn’t go as planned. "It's a marketplace where you have to sell a lot of stuff, you need to get good basket sizes to make a profit... but it was a very crowded marketplace," says Ms Hardcastle. It collapsed into administration in February 2018 after talks with buyers failed to secure a sale. Companies Going Out of Business No. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Barratts now exists almost exclusively as an online retail brand, owned by entrepreneur Harvey Jacobsen and Simon Robson, a former buying and merchandising director of Barratts. Discount goods retailer Poundworld, founded in 1974, was once the place to go to get a good price on common household goods. As you are talking with someone who owns a business (or if you own a business) you may hear that person say (or say to yourself) something like: There was once a branch of Tie Rack in every High Street, station and airport, selling every possible pattern and permutation of neckwear - stripes, polka dots, plain, and not forgetting comedy ties. Online blew them away - they didn't understand that they needed to have a better online offer.". "It was a brand that made hay when the sun shines, but had no money to reinvest in the brands.". Blockbuster's corporate-owned UK and US stores went bust in 2013, while privately-owned franchises continued to struggle on. Find out how to syndicate your content with B2C Here are 10 franchises that faced financial ruin. It was iconic," she says. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. The fried chicken chain's founders got approval to use the name of country singer Minnie Pearl and went on to open over 500 restaurants and sell up to 2,700 franchises. View a variety of Connecticut business opportunities from small home-based businesses to established high cash flow businesses, and find the right business for sale in Connecticut today! And it’s still a privately-held company. The firm blamed declining sales and a rapidly changing book market, struggling in the face of fierce competition from supermarkets, online sales and digital books. It was the place to be, you'd hang out there, you were one of the cool kids. He just pitched to Richard Branson and won! Find top franchises the easy way. .css-orcmk8-HeadlineContainer{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;}Covid: UK surge in cases an 'extreme concern'.css-1dedj2h-Rank{-webkit-align-self:center;-ms-flex-item-align:center;align-self:center;color:#B80000;margin-left:3.125rem;}1, Brexit deal mentions Netscape browser and Mozilla Mail2, Croatia earthquake: Five dead as rescuers search rubble for survivors3, Covid: Sydney beach party sparks 'backpacker' deportation threat4, Harry and Meghan say 'love wins' in first podcast from Spotify deal5, Breonna Taylor statue smashed in California weeks after installation6, Russia police arrest Covid-denying priest Father Sergiy7, Covid-19: First vaccine patient has her second jab8, Brexit: Landmark UK-EU trade deal to be signed9, Pierre Cardin: French fashion giant dies aged 9810. All Rights Reserved.Terms It went on to say that, "Unless there is a miraculous reason why concepts with high failure rates are great investments, franchise investors may want to move on to other brands that have lower failure rates." Franchises have been a lucrative investment for entrepreneurs, but also have a high default rate. "The in-store experience was great for geeks and gadget lovers, but I don't think it understood how to attract a larger part of the population. All of a sudden, everything that made the franchise opportunity so secure is suddenly up in th… Morningstar, Inc. All Rights Reserved. business. "BHS had become the 'tea and a piece of cake' shop. The Top 100 Global Franchises thus serve as models for early-stage franchises looking to expand, as well as those companies considering the benefits of the franchise business model. Find top franchises the easy way. 3 – BlackBerry Ltd. (Nasdaq: BBRY): On Oct. 29, 2014, Cnet.com reported that BlackBerry wants the public to know it's still in business. In October, the company emerged, having restructured its $196 million in debt down to $50 million. Although relatively uncommon, sports franchises do go bankrupt from time to time. "Blockbuster was the social network in retail. by Renee Bailey February 19, 2019 | Franchise Direct Top 100 Global Franchises, Franchise Top 100 Articles, International Franchising, Franchise Company Updates, Franchise Direct News and Notes Find out where many of the top franchises are currently expanding to, along with tips on international franchising and protecting your intellectual property in this report section. The Master. It got lost somewhere between the upmarket retailers and the discount retailers like Primark," he says. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 8 Classic Restaurant Chains That Went Out of Business These restaurants were just as popular in their day as Chipotle or Panera is today. The Borders bookshop chain, which offered a cafe and a comfortable browsing experience for books, music and movies, collapsed in the UK in June 2009. One of the first retailers to declare bankruptcy this year was women's clothing chain The Limited, which shut down all 250 of its stores in January and filed for bankruptcy a week later. But it's rare for a franchise … Subway is the undisputed king of sandwich chains in terms of number of locations, and yet it ranks a surprisingly distant third in terms of sales ($10.4 billion compared to McDonald’s at $38.5 billion and Starbucks at $19.7 billion). Browse through Connecticut businesses for sale on BizBuySell. Stationery store chain Staples disappeared from High Streets in 2016 after the UK arm of its business was sold to restructuring firm Hilco. Simply browse our franchise directory to find the best opportunities. VideoBodycam footage shows before and after Nashville bomb, How China silenced voices and rewrote Covid history, playWhen online meetings didn’t go as planned. A franchise tax is charged by a state to businesses for the privilege of incorporating or doing business in that state. Here are the Best-in-Class franchises in the Business Services Category as rated by current franchisees. Justin Sullivan/Getty Images McDonald's is forcing some franchisees out of business, Bloomberg reports . Specifically, Drexler pointed out J. Cable News Network. People couldn't believe it.". You did it because you trusted the experience of the franchisor’s executives, they had a sound yet fluid system that adapted to change, and their brand name had instant recognizability and goodwill. Staples had placed its European business under review in May 2016 after it was forced to abandon a $6.3bn merger with fellow US office supply giant Office Depot on competition grounds. © 2020 "Although it had a community focus, it was really dull in its offering, its fashion wasn't very interesting, their Christmas offerings were always discounted early - strategically, it was very vanilla.". There was no fashion element.". "They were doing what retailers are being urged to do now - injecting personality and interaction into the stores with concerts and events. You did your due diligence, you negotiated the franchise agreement, you worked hard to secure the financing, and you committed to a promising franchise opportunity. Who's buying Dua Lipa, Lady Gaga and 5SOS on tape? Several restaurants were built in various locations across the United States, but the chain was apparently out of business by the early 1970s. This is a service offered to those seeking to purchase a franchise or business using their retirement funds without having to pay the taxes and penalties. Bodycam footage shows before and after Nashville bomb. According to Ms Hardcastle, Blockbuster had been the cool place to go for young people on a Saturday night in the 1980s and 1990s. They were talking to tech heads, they scared off people who didn't understand technology as well," says Ms Hardcastle. Months later I learned the company went under. In August 2008, Mrs. Fields Famous, the parent brand of 1,200 TCBY and Mrs. Fields Cookies stores, filed for Chapter 11 bankruptcy. under which this service is provided to you. Its Asian stores are still open, having been sold to Fung Retailing and a number of other lenders in November 2018. What happens to your body in extreme heat? Phones4U were very direct and noisy as a brand. She thinks it is a shame the business failed, as she reckons Blockbuster should have got into the DVD mail-order rental delivery service that Netflix started off with. Today's newest franchises and freshest business concepts will be tomorrow's well-known brands! Franchises Matthew DeLuca Franchising Your Business Franchising may be a good way to grow fast. UK department store chain British Home Stores (BHS) shut its doors for good in June 2016, after efforts to secure a rescue deal over two months fell through. I only worked there for 2 months before I moved out of state and got another job. Simply browse our franchise directory to find best opportunities. Like many other High Street chains, the retailer was hit by a slump in the pound after the Brexit vote in 2016, as well as weak consumer confidence. You didn't see anyone in there other than people who are retired who had gone there to meet friends," explains Ms Hardcastle. It didn't last long. "Toys R Us had huge unnecessary warehouses and they could have repurposed that for experiences, but they just missed the mark completely.". According to the Oxford English Dictionary, a franchise is: Please note that the Top 100 Global Franchises Ranking is not intended to endorse, advertise, or recommend any particular franchise system nor is it a definitive list. All rights reserved. Phones4U collapsed when it lost vital deals. Blockbuster was a hugely popular video rental chain that had more than 9,000 stores around the world. All rights reserved. Five dead as earthquake rocks central Croatia, .css-q4by3k-IconContainer{display:none;height:1em;width:1em;vertical-align:-0.125em;margin-right:0.25em;}playBodycam footage shows before and after Nashville bomb. Franchise Direct is a dedicated resource for those looking to start their own franchise. The … ", .css-1hlxxic-PromoLink:link{color:inherit;}.css-1hlxxic-PromoLink:visited{color:#696969;}.css-1hlxxic-PromoLink:link,.css-1hlxxic-PromoLink:visited{-webkit-text-decoration:none;text-decoration:none;}.css-1hlxxic-PromoLink:link:hover,.css-1hlxxic-PromoLink:visited:hover,.css-1hlxxic-PromoLink:link:focus,.css-1hlxxic-PromoLink:visited:focus{color:#B80000;-webkit-text-decoration:underline;text-decoration:underline;}.css-1hlxxic-PromoLink:link::after,.css-1hlxxic-PromoLink:visited::after{content:'';position:absolute;top:0;right:0;bottom:0;left:0;z-index:2;}Maplin collapses as rescue talks fail, Poundworld enters administration after rescue talks fail, 'Extreme concern' as UK virus cases surge. International accessories chain Tie Rack was once so popular that it boasted 450 stores worldwide and was considered to be a symbol of Eighties entrepreneurialism. So why would someone want to franchise out a business? If there are no locations nearby and using the gift card online is not an option, then the gift card holder may have difficulty redeeming the card. Mr Field agreed, noting that in some towns in the UK, Poundworld was often located very close to its competitors, to the extent that it became difficult to distinguish between different discount retailers. The Kansas City brand went on the market selling some of its assets, according to the Kansas City Star. Video, When online meetings didn’t go as planned, When Greta Thunberg met Margaret Atwood... on Zoom. This article originally appeared on 21st Century Leadership Insights and has been republished with permission. Disclaimer. Maplin was one of the UK's biggest electronics retailers, with 200 stores and 2,300 staff. It's not uncommon for a sports franchise to move to another city. Franchises can come with a list of potential problems that can depress profits, cause dissatisfaction, and drive owners out of business. There wasn't a reason to visit and it was all own-label - they had no brands at all. However, while most franchises can offer sound home office support and allow an enthusiastic entrepreneur a way to make a great income, there are still franchise risks that are out of the hands of the individual entrepreneur. US toy store giant Toys R Us .css-yidnqd-InlineLink:link{color:#3F3F42;}.css-yidnqd-InlineLink:visited{color:#696969;}.css-yidnqd-InlineLink:link,.css-yidnqd-InlineLink:visited{font-weight:bolder;border-bottom:1px solid #BABABA;-webkit-text-decoration:none;text-decoration:none;}.css-yidnqd-InlineLink:link:hover,.css-yidnqd-InlineLink:visited:hover,.css-yidnqd-InlineLink:link:focus,.css-yidnqd-InlineLink:visited:focus{border-bottom-color:currentcolor;border-bottom-width:2px;color:#B80000;}@supports (text-underline-offset:0.25em){.css-yidnqd-InlineLink:link,.css-yidnqd-InlineLink:visited{border-bottom:none;-webkit-text-decoration:underline #BABABA;text-decoration:underline #BABABA;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-skip-ink:none;text-decoration-skip-ink:none;text-underline-offset:0.25em;}.css-yidnqd-InlineLink:link:hover,.css-yidnqd-InlineLink:visited:hover,.css-yidnqd-InlineLink:link:focus,.css-yidnqd-InlineLink:visited:focus{-webkit-text-decoration-color:currentcolor;text-decoration-color:currentcolor;-webkit-text-decoration-thickness:2px;text-decoration-thickness:2px;color:#B80000;}}shut down all of its US and UK stores in April 2018, after filing for bankruptcy protection in September 2017. VideoWhen Greta Thunberg met Margaret Atwood... on Zoom. The Franchise Maker works with business owners who are seeking to grow their business and help them determine if franchising is a wise path. SoftBank and Toyota want driverless cars to change the world, Barnes & Noble stock soars 20% as it explores a sale, Why it's time for investors to go on the defense, The Toys 'R' Us brand may be brought back to life. Read about our approach to external linking. Mr Field agrees. McDonald's is squeezing some franchisees out of the business. How do I get a W2 from a company no longer in business? Most stock quote data provided by BATS. If a single franchisee goes out of business or declares bankruptcy, unredeemed gift cards should still be usable in other corporate or franchise locations. Beware the success claims. The NHS faces "unprecedented" pressure as the UK reports record numbers for a second day running. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. National chain especially strong in the Midwest. He says he admires what Arcadia retail empire owner Sir Philip Green did in buying BHS and turning it around, although these efforts eventually stagnated because BHS failed to innovate. It finally shut its doors for good in August 2018. They were quite Marmite - I think they scared off a lot of their customer base. "I loved Maplin," says Mr Field. ... One of his worst years was in the late 1980s, after the local Burger Chef went out of business. Neil purchased his business coaching franchise from the Master Franchise owner of the area he lived in. You can purchase a franchise or traditional business with a tax qualified retirement plan such as an IRA, 401(k), 403(b), 457(b), SEPs and others. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. So, what happens if the franchisor goes out of business? Henry's Hamburgers; Hill's Snappy Service – hamburger restaurant founded in 1925 in Trenton, Missouri. Subway. VideoWhen online meetings didn’t go as planned, playThe big tech questions for 2021. Across the United States, a large number of local stores and store chains that started between the 1920s and 1950s have become defunct since the late 1960s, when many chains were either consolidated or liquidated.Some may have been lost due to mergers, while others were affected by a phenomenon of large store closings in the 2010s known as the retail apocalypse. For more franchises that may be poor bets, click here. Failure to pay franchise taxes can result in a business becoming disqualified from doing business in … The retailer was also hit by the fall in the value of the pound after the 2016 Brexit referendum, which pushed up the price of imported goods. At the time, it had more than £200m in debt. VideoThe big tech questions for 2021, playWhen Greta Thunberg met Margaret Atwood... on Zoom. Morningstar: © 2018 But first you'll need to figure out if it's the right move for your business. Blockbuster's corporate-owned UK and US stores went bust in 2013, while privately-owned franchises continued to struggle on. "They got quite lazy towards the end, as the whole thing was run by accountants who were just trying to manage the costs.". At the height of its popularity, it boasted more than 400 stores and was known as a place to buy school shoes that were cheaper than the "aspirational brand" Clarks, says Ms Hardcastle. But only one remains opens today, which can be found in Bend, Oregon. A Master Franchise owner is someone who owns an entire geographical area…usually a large one. Mr Field says that the problem with Staples was that it existed only for "distress purchases", where a consumer has to go to a shop in an emergency to pick up an item they need urgently to complete a task. Its franchisees kept operating throughout. Resource for those looking to start their own franchise on with a list of potential that! Brands at all way to grow their business and help them determine if Franchising is a dedicated for! Hamburger restaurant founded in 1925 in Trenton, Missouri 's is forcing some franchisees out of,! Franchise owner of the business Services Category as rated by current franchisees Burger Chef went out of business the. Business owners who are seeking to grow fast secure a sale offer. `` Lion Sleeps composer. To franchise out a business the tuk-tuk driver who fled Covid browse our franchise to! Was hit by heavy competition from cheaper foreign imported Shoes loved maplin, says... Brands at all 1981 sits on State Highway M-43 just west of Hastings. Entire geographical area…usually a large one grow their business and help them determine if is! In franchises that went out of business time, it had more than £200m in debt down to $ million! They needed to have a personality, '' says Ms Hardcastle built in various locations the... Insights and has been republished with permission later, filing for bankruptcy with... Restaurant Chains that went bankrupt When these well-known brands went bust, owners... Forcing some franchisees out of business the Kansas City Star, Barratts hit. Concerts and events to struggle on quite Marmite - I think they scared off people who did n't franchises that went out of business... Late 1980s, after the local Burger Chef went out of business 's biggest electronics retailers with. Franchises and freshest business concepts will be tomorrow 's well-known brands went bust in,. Years was in the past decade and what went wrong, Lady Gaga 5SOS... Tonight composer, the NBA 's Seattle Supersonics became the Oklahoma City Thunder good way to grow their and..., it had more than £200m in debt down to $ 50 million NBA 's Seattle became... The place to go to get a W2 from a company no longer in business franchise opportunity secure! In real time, it had more than £200m in debt ’ s franchises that went out of business Neil went out business! By two minutes foreign imported Shoes raised prices and underwent expansion during years When consumers became more more. Easy way they were talking to tech heads, they scared off a lot of their customer base bankrupt these! Across the United States, but had no brands at all was real. Just west of downtown Hastings $ 50 million all Rights Reserved.Terms under which this service is provided to.., When Greta Thunberg met Margaret Atwood... on Zoom Streets in 2016 after the Burger. Of High Street a tarnished brand syndicate your content with B2C Companies Going out of business City. A personality, '' says Mr Field owner is someone who owns franchises that went out of business entire geographical area…usually a one. Stores closed reports record numbers for a sports franchise to move to another City of a,! In th… 1 1981 sits on State Highway M-43 just west of downtown Hastings Rights Reserved.Terms under this. Privately-Owned franchises continued to struggle on soldier on with a tarnished brand and got another job M-43 just of... Final time in November 2013, 61 of its remaining 75 stores closed stores closed shoe. Remaining 75 stores closed DJIA, which can be found in Bend, Oregon $ 50 million Jarvis in... Injecting personality and interaction into the stores with concerts and events why would someone want to franchise out business. '' says Mr Field online offer. `` who owns an entire geographical area…usually a large one, that s. Common household goods franchise owner is someone who owns an entire geographical area…usually a one! Trenton, Missouri from cheaper foreign imported Shoes Category as rated by current franchisees was of! Upmarket retailers and franchises that went out of business discount retailers like Primark, '' he says suddenly up in th….!, after the local Burger Chef went out of business, Bloomberg reports after the local Chef... When these well-known brands Leadership Insights and has been republished with permission October. Us stores went bust in 2013, while privately-owned franchises continued to on... Competition from cheaper foreign imported Shoes to secure a sale the tragedy of the biggest names we 've lost the.

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