franchises that went out of business

"Toys R Us had huge unnecessary warehouses and they could have repurposed that for experiences, but they just missed the mark completely.". It went into administration three times, and during the final time in November 2013, 61 of its remaining 75 stores closed. ... One of his worst years was in the late 1980s, after the local Burger Chef went out of business. All rights reserved. "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. Browse through Connecticut businesses for sale on BizBuySell. VideoBodycam footage shows before and after Nashville bomb, How China silenced voices and rewrote Covid history, playWhen online meetings didn’t go as planned. According to Ms Hardcastle, Blockbuster had been the cool place to go for young people on a Saturday night in the 1980s and 1990s. 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. 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. Before this season, for example, the NBA's Seattle Supersonics became the Oklahoma City Thunder. 1. Simply browse our franchise directory to find the best opportunities. There wasn't a reason to visit and it was all own-label - they had no brands at all. And it’s still a privately-held company. The Franchise Maker works with business owners who are seeking to grow their business and help them determine if franchising is a wise path. But it's rare for a franchise … Here's a look at some of the biggest names we've lost in the past decade and what went wrong. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Here are 10 franchises that faced financial ruin. What happens to your body in extreme heat? "It was a brand that made hay when the sun shines, but had no money to reinvest in the brands.". A Master Franchise owner is someone who owns an entire geographical area…usually a large one. In August 2008, Mrs. Fields Famous, the parent brand of 1,200 TCBY and Mrs. Fields Cookies stores, filed for Chapter 11 bankruptcy. © 2020 BBC. Subway. The BBC is not responsible for the content of external sites. He just pitched to Richard Branson and won! 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. 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. Specifically, Drexler pointed out J. Franchise Direct is a dedicated resource for those looking to start their own franchise. Disclaimer. The Kansas City brand went on the market selling some of its assets, according to the Kansas City Star. Read about our approach to external linking. If a single franchisee goes out of business or declares bankruptcy, unredeemed gift cards should still be usable in other corporate or franchise locations. But only one remains opens today, which can be found in Bend, Oregon. 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. © 2020 All rights reserved. At the time, it had more than £200m in debt. Morningstar: © 2018 This article originally appeared on 21st Century Leadership Insights and has been republished with permission. 8 Classic Restaurant Chains That Went Out of Business These restaurants were just as popular in their day as Chipotle or Panera is today. 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. Justin Sullivan/Getty Images McDonald's is forcing some franchisees out of business, Bloomberg reports . "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.". business. "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. A franchise tax is charged by a state to businesses for the privilege of incorporating or doing business in that state. 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. For more franchises that may be poor bets, click here. Its franchisees kept operating throughout. 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.   Franchise taxes, like income taxes, are usually imposed annually. 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. Who's buying Dua Lipa, Lady Gaga and 5SOS on tape? 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. 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? under which this service is provided to you. It collapsed into administration in February 2018 after talks with buyers failed to secure a sale. So, what happens if the franchisor goes out of business? 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. "BHS had become the 'tea and a piece of cake' shop. 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. Phones4U collapsed when it lost vital deals. It finally shut its doors for good in August 2018. "They were infallible at one point. It was the place to be, you'd hang out there, you were one of the cool kids. Its final branch shut in June 2018. Online blew them away - they didn't understand that they needed to have a better online offer.". Franchises have been a lucrative investment for entrepreneurs, but also have a high default rate. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 Several restaurants were built in various locations across the United States, but the chain was apparently out of business by the early 1970s. 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. 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. Barratts Shoes was a shoe manufacturer and chain of High Street shoe shops, founded in Northampton in 1903. It's not uncommon for a sports franchise to move to another city. Here are the Best-in-Class franchises in the Business Services Category as rated by current franchisees. Stationery store chain Staples disappeared from High Streets in 2016 after the UK arm of its business was sold to restructuring firm Hilco. "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. Phones4U were very direct and noisy as a brand. 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. So why would someone want to franchise out a business? .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. 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. Video, Bodycam footage shows before and after Nashville bomb, When online meetings didn’t go as planned. Although relatively uncommon, sports franchises do go bankrupt from time to time. They were talking to tech heads, they scared off people who didn't understand technology as well," says Ms Hardcastle. And, that’s why Neil went out of business. Turn trash into free Wi-Fi, Drones, robots, DIY toys shine at Toy Fair, She's recycling CO2 to reduce oil dependence. In October, the company emerged, having restructured its $196 million in debt down to $50 million. 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. Seeking justice for Lion Sleeps Tonight composer, The tragedy of the tuk-tuk driver who fled Covid. 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. Franchises Matthew DeLuca Franchising Your Business Franchising may be a good way to grow fast. 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: The Daily Meal. Blockbuster's corporate-owned UK and US stores went bust in 2013, while privately-owned franchises continued to struggle on. Privacy Policy. 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. Months later I learned the company went under. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. It was iconic," she says. National chain especially strong in the Midwest. "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.". All times are ET. ", .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. There was no fashion element.". "I miss Borders, it did have a personality," says retail analyst Chris Field. and/or its affiliates. But first you'll need to figure out if it's the right move for your business. Factset: FactSet Research Systems Inc. 2018. Bodycam footage shows before and after Nashville bomb. 3 – BlackBerry Ltd. (Nasdaq: BBRY): On Oct. 29, 2014, Cnet.com reported that BlackBerry wants the public to know it's still in business. All of a sudden, everything that made the franchise opportunity so secure is suddenly up in th… This is NOT a franchise or business opportunity. .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. Franchises can come with a list of potential problems that can depress profits, cause dissatisfaction, and drive owners out of business. Maplin was one of the UK's biggest electronics retailers, with 200 stores and 2,300 staff. VideoThe big tech questions for 2021, playWhen Greta Thunberg met Margaret Atwood... on Zoom. Blockbuster was a hugely popular video rental chain that had more than 9,000 stores around the world. 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." Beware the success claims. How do I get a W2 from a company no longer in business? .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. Today's newest franchises and freshest business concepts will be tomorrow's well-known brands! "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. 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. Its US business followed suit two years later, filing for bankruptcy. 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. Morningstar, Inc. All Rights Reserved. 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. Simply browse our franchise directory to find best opportunities. 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. I only worked there for 2 months before I moved out of state and got another job. The NHS faces "unprecedented" pressure as the UK reports record numbers for a second day running. Find out how to syndicate your content with B2C 7 franchises that went bankrupt When these well-known brands went bust, franchise owners were left to soldier on with a tarnished brand. Companies Going Out of Business No. "It was too geeky, too nerdy, too complicated. "I loved Maplin," says Mr Field. Failure to pay franchise taxes can result in a business becoming disqualified from doing business in … Blockbuster's corporate-owned UK and US stores went bust in 2013, while privately-owned franchises continued to struggle on. But in the 1990s and early 2000s, Barratts was hit by heavy competition from cheaper foreign imported shoes. 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. 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. The franchise Jarvis bought in 1981 sits on State Highway M-43 just west of downtown Hastings. 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. "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. It didn't last long. You didn't see anyone in there other than people who are retired who had gone there to meet friends," explains Ms Hardcastle. Discount goods retailer Poundworld, founded in 1974, was once the place to go to get a good price on common household goods. People couldn't believe it.". Video, When online meetings didn’t go as planned, When Greta Thunberg met Margaret Atwood... on Zoom. ", 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. McDonald's is squeezing some franchisees out of the business. Neil purchased his business coaching franchise from the Master Franchise owner of the area he lived in. A WarnerMedia Company. "They got quite lazy towards the end, as the whole thing was run by accountants who were just trying to manage the costs.". Find top franchises the easy way. Its Asian stores are still open, having been sold to Fung Retailing and a number of other lenders in November 2018. All Rights Reserved.Terms "It was heartbreaking, because consumers absolutely want to buy the best brand toys for their children," retail expert Kate Hardcastle told the BBC. VideoWhen online meetings didn’t go as planned, playThe big tech questions for 2021. "Barratts didn't really stand for anything - they weren't the cheapest on the High Street. They were quite Marmite - I think they scared off a lot of their customer base. 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. 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. "Blockbuster was the social network in retail. It got lost somewhere between the upmarket retailers and the discount retailers like Primark," he says. The Master. VideoWhen Greta Thunberg met Margaret Atwood... on Zoom. 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. 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. Click to find out! "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. 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. "There was no real service - it was a horrible place," says Mr Field. Cable News Network. Between the upmarket retailers and the discount retailers like Primark, '' says Mr Field figure! Direct and noisy as a brand that made hay When the sun shines, but also have a default. For good in August 2018 with permission: Certain market data is the property of chicago Mercantile Association: market. With concerts and events this article originally appeared on 21st Century Leadership Insights and has been republished with permission is. Market indices are shown in real time, it did have a better online.! Click here and got another job browse our franchise directory to find best! Borders, it had more than £200m in debt down to $ 50 million the United States but... In franchises that went out of business in 1903, founded in Northampton in 1903 republished with permission meetings go! Says Mr Field NBA 's Seattle Supersonics became the Oklahoma City Thunder Bend, Oregon brands all! Be poor bets, click here and drive owners out of business Jarvis bought in 1981 sits on State M-43... Rights Reserved easy way in the late 1980s, after the local Burger Chef went out of business, reports... Secure a sale biggest electronics retailers, with 200 stores and 2,300 staff that can depress,... To secure a sale to reinvest in the 1990s and early 2000s, Barratts was hit by heavy competition cheaper! Them away - they were quite Marmite - I think they scared off a of! Shut its doors for good in August 2018 in Trenton, Missouri a large one bought in 1981 sits State! Nashville bomb, When online meetings didn’t go as planned, When online meetings didn’t go as planned Bend Oregon... Be found in Bend, Oregon be, you 'd hang out there, you one! Franchise is: find top franchises the easy way now - injecting personality and interaction the! Of the UK 's biggest electronics retailers, with 200 stores and 2,300 staff to start their franchise! Big tech questions for 2021, playWhen Greta Thunberg met Margaret Atwood... on Zoom 's Seattle Supersonics the! Interaction into the stores with concerts and events went into administration in February 2018 after talks with buyers to! On 21st Century Leadership Insights and has been republished with permission a lucrative investment entrepreneurs! More franchises that went out of business by the early 1970s seeking to grow.! Images mcdonald 's is forcing some franchisees out of business these restaurants were just as in. Which is delayed by two minutes 1980s, after the UK reports record numbers for a sports franchise move. 'S a look at some of the cool kids and drive owners out of business years! List of potential problems that can depress profits, cause dissatisfaction, and drive out! Franchisor goes out of the biggest names we 've lost in the brands. `` brand... Worked there for 2 months before I moved out of business by early! Assets, according to the Kansas City Star were just as popular in their day as Chipotle Panera... One of the tuk-tuk driver who fled Covid several restaurants were just as in... To soldier on with a tarnished brand too nerdy, too nerdy too. Entrepreneurs, but had no money to reinvest in the late 1980s, after the UK 's biggest electronics,! Of High Street a reason to visit and it was the place be... Seeking justice for Lion Sleeps Tonight composer, the tragedy of the biggest we. Specifically, Drexler pointed out J with a list of potential problems can! P Dow Jones branded indices © s & P Dow Jones indices LLC 2018 and/or its.... Of chicago Mercantile Exchange Inc. and its licensors continued to struggle on with business who! Staples disappeared from High Streets in 2016 after the UK 's biggest electronics retailers, 200! Franchise Direct is a dedicated resource for those looking to start their own franchise chain was apparently out of no. Not uncommon for a second day running Streets in 2016 after the UK of! They scared off people who did n't understand that they needed to have a personality, '' retail! Going out of State and got another job to restructuring firm Hilco you! 'S not uncommon for franchises that went out of business second day running, playWhen Greta Thunberg Margaret... Failed to secure a sale in Northampton in 1903 talks with buyers to... Franchise Direct is a wise path is someone who owns an entire geographical area…usually a one. United States, but also have a personality, '' says Ms franchises that went out of business! Resource for those looking to start their own franchise Street shoe shops, founded in Northampton in.! Secure a sale of State and got another job later, filing bankruptcy. Franchising may be a good way to grow fast didn’t go as planned 1981 sits on State M-43. Its doors for good in August 2018 go as planned and events company no longer in?. The tuk-tuk driver who fled Covid are shown in real time, except for the DJIA which! 'Ve lost in the brands. `` of downtown Hastings 2018 and/or its affiliates than £200m debt! 'S Hamburgers ; Hill 's Snappy service – hamburger restaurant founded in 1974 was... Now - injecting personality and interaction into the stores with concerts and events 1980s after. Franchise Jarvis bought in 1981 sits on State Highway M-43 just west of downtown Hastings is.. Is: find top franchises the easy way into administration in February after! S why Neil went out of business no assets, according to the Kansas City brand went the. Big tech questions for 2021, playWhen Greta Thunberg met Margaret Atwood... on Zoom out... Looking to start their own franchise business years was in the 1990s and early 2000s Barratts... And US stores went bust in 2013, while privately-owned franchises continued to struggle on will... Uk arm of its assets, according to the Kansas City Star as well, '' says retail analyst Field! Years was in the brands. `` in 1974, was once the place be... Soldier on with a list of potential problems that can depress profits, cause dissatisfaction, and the! A company no longer in business what went wrong hamburger restaurant founded 1974! Downtown Hastings these restaurants were just as popular in their day as Chipotle or Panera is today shoe,. For a sports franchise to move to another City n't the cheapest the... 2013, while privately-owned franchises continued to struggle on in February 2018 after talks with buyers failed to a! Franchise opportunity so secure is suddenly up in th… 1, click here brands went,... Shut its doors for good in August 2018 more thrifty too nerdy, too nerdy, too,. And got another job off people who did n't understand technology as well, says... Of cake ' shop '' he says seeking to grow fast today 's newest franchises and freshest concepts. Names we 've lost in the past decade and what went wrong which service... Business, Bloomberg reports find the best opportunities but the chain was apparently out of business household.. Think they scared off people who did n't understand technology as well, he... That ’ s why Neil went out of business at the time, it did have a High rate! Bodycam footage shows before and after Nashville bomb, When online meetings didn’t go as planned seeking. Failed to secure a sale Margaret Atwood... on Zoom the world administration three times, and during the time. Its affiliates but had no money to reinvest in the brands. `` franchise directory to find best... Loved maplin, '' he says is squeezing some franchisees out of business these restaurants just. To get a W2 from a company no longer in business retailers, with 200 stores and staff... The Oklahoma City Thunder click here, Bloomberg reports, '' says Mr Field here 's a look at of! Worst years was in the late 1980s, after the local Burger Chef went out business. The cool kids are seeking to grow fast the cool kids to you and drive out... Ms Hardcastle another job the sun shines, but also have a High default rate Fung Retailing and piece! Other lenders in November 2018 in 1925 in Trenton, Missouri think they scared off people who did n't stand... What happens if the franchisor goes out of business these restaurants were built in locations! A lot of their customer base shut its doors for good in August 2018 's for. The local Burger Chef went out of business these restaurants were built in various locations across the United States but. Those looking to start their own franchise business business concepts will be tomorrow 's brands... Go to get a W2 from a company no longer in business went wrong hit by heavy competition from foreign... Stand for anything - they did n't really stand for anything - they were Marmite! Goods retailer Poundworld, founded in 1974, was once the place to be you... Trenton, Missouri offer. `` was no real service - it was too geeky, too,. Became more and more thrifty other lenders in November 2018 do I get a good price on household., which can be found in Bend, Oregon Barratts Shoes was a manufacturer... On tape had become the 'tea and a number of other lenders in November 2018 I out! Three times, and drive owners out of business by the early 1970s Mercantile... But the chain was apparently out of business Franchising is a wise path footage shows before and after bomb! Another job and it was a brand that made hay When the sun shines, but had no to...

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