Made.com gives out share options to staff
Online furniture retailer Made.com is handing out share options worth more than £10,000 to all of its staff after a windfall year for the company. Made chief executive Philippe Chainieux on Monday said sales in 2020 had been “extremely strong”, with the company deciding to give shares to 650 staff members as an acknowledgement that it wouldn’t have been possible without them. “There have been many challenges for the retail sector this year, but I am proud to say that thanks to the structure of our business and the tireless efforts of our people, we have emerged from the crisis in a very strong position,” Chainieux said. “The share options are a way of saying ‘thank you’ to colleagues for their past efforts but also a way to give them a stake in the exciting future we see for our brand.” Aside from senior management, all Made staff will receive the same number of share options, which vest in equal tranches over the next three years. They are estimated to be worth the equivalent of six months’ salary. Made said restrictions from coronavirus and the ensuing shift to working from home across the UK had resulted in a surge of home furniture sales. The design specialist on Monday said it was on course for an eleventh year of consecutive sales growth, with the number of active customers and followers on Instagram now surpassing on million. November’s Black Friday shopping event saw Made experience its busiest day in the company’s ten-year history, with UK sales doubling year-on-year. Chainieux noted recent trading has been shaped by the pandemic, fundamentally changing the way people shop and think about their home. Although Made’s showrooms across Europe had been forced to shut during coronavirus lockdowns, the brand said its outlook for Christmas and January trading is “very positive”. “We have seen a rapid acceleration in the shift to online this year, an evolution which was predicted to take four or five years taking place in a matter of months,” Chainieux commented. “Covid has forced more people to work from home throughout this year, we have seen a huge increase in demand for home offices. Whilst there will undoubtedly be a return to the office in due course, we believe the ability and requirement to work from home on a part-week basis will remain,” Chainieux added.
Associated British Foods joins line up of Arcadia suitors
Primark owner Associated British Foods (ABF) is reportedly considering a bid for a number of Arcadia’s brands, according to the Sunday Times. ABF is believed to be looking over an offer for a portion of Sir Philip Greens’ retail empire, joining a long line of potential suitors that includes Mike Ashley’s Frasers Group, Mahmud Kamani’s Boohoo, Marks & Spencer, Next, River Island and US firm Authentic Brands. While there has been extensive talk around potentially interested parties, administrators Deloitte are expected to receive firm offers by the end of this week. Over the weekend Juicy Couture and Barneys owner Authentic Brands was linked to a double takeover deal for Arcadia and Debenhams. City sources cited by the Telegraph said Authentic Brands is believed to have “deep pockets” and is considering a bid for both retailers. Any developments at Arcadia will also impact administration talks for Debenhams, as it is the biggest operators of concessions in Debenhams’ stores.
US firm Authentic Brands linked to double takeover of Debenhams & Arcadia
US retail firm Authentic Brands is reported to be in discussions with administrators at both Arcadia Group and Debenhams, according to the Telegraph. City sources cited by the paper said Authentic Brands is believed to have “deep pockets” and is considering a bid for both retailers. Sir Philip Green’s retail empire fell into administration on November 30, affecting over 13,000 jobs, with suppliers reportedly left in the dark on whether they will receive any money owed to them. Joint administrators at Deloitte Daniel Butters and Gavin Maher were drafted to manage Arcadia, which owns Topshop, Burton, Dorothy Perkins and Evans among others. On Friday the Guardian reported that Deloitte will look for as much as £200 for the Topshop brand alone. Developments at Arcadia will have a knock-on effect for Debenhams, as it is the biggest operators of concessions in Debenhams’ stores. Arcadia’s fashion brands accounted for an estimated £75 million of Debenhams’ annual sales before the pandemic, according to the Sunday Times. New York-based brand management company Authentic Brands counts up-market department store Barneys and Juicy Couture in its group, and snapped up Forever 21 and Brooks Brothers already this year. It is thought founder and chairman Jamie Salter has built up a reserve of more than USD 1 billion (£756 million) in order to acquire struggling businesses. Elsewhere, retail mogul Mike Ashley is said to be racing to assemble a bid for Debenhams’ web business, according to the Mail on Sunday. City sources reportedly told the paper that Ashley is in discussions to buy Debenhams’ web business for around £500 million. “There’s very little time left to rescue the business. But without at least 30 or 40 of the 124 stores, this might not look very much like a rescue at all,” said one City source speaking to the Mail on Sunday.
Fortnum & Mason hampers running out
Fortnum & Mason hampers may sell out before Christmas after receiving unprecedented demand for shoppers sending presents to loved ones they cannot see this festive period due to coronavirus restrictions. The luxury retailer is well-known for selling an extensive range of hampers filled with food and wines for shoppers, ranging from under £100 for smaller selections to £6,000 for The Imperial Hamper. “It’s fair to say that demand this year has been unlike any other and customers have taken heed of the calls to order early as demand for courier capacity across the country has risen exponentially,” outgoing chief executive Ewan Venters told the Telegraph. “We have sold out of some of our Christmas products and hampers earlier than ever before, but we have not sold out of hampers,” Venters added. While three households can mix in private homes and stay overnight over the festive period, many people in the UK will still experience a scaled-back Christmas compared to the socialising and mixing with extended families that usually takes place. “It’s not surprising that more people are spreading Christmas cheer in that way. But we have also seen more demand for hampers for self-consumption this year as they seek to make the most of their own festive period,” Venters said. The Fortnum & Mason website currently displays all hampers apart from its Sovereign Hamper costing £2,500 and its £6,000 Imperial Hamper as sold out. To support customer demand, Fortnum said shoppers can still use the choose-your-own service to fill a hamper by coming to its store.
Huawei opens doors to first ever physical UK store
Huawei has opened the doors to its first ever physical UK store in Westfield Stratford City which it says will “open up more jobs” and “help support the British economy.”
The Chinese technology giant’s new store will sell everything from its flagship smartphones, to its “extensive range” of audio, wearable, PC and tablet products.
According to Huawei, which has now been trading in the UK for 20 years, this is one of three stores it plans to open in the coming months, creating 15 new jobs for local residents.
The store was originally due to open in October, with a second store in an undisclosed London location due to open soon afterwards.
In July, just a day after the UK government announced it would ban Huawei from producing its 5G network, the technology retailer pledged to invest £10 million into the UK’s high streets.
Alongside offering its full range of products, Huawei’s store will provide product training, technical support and a personalised consultation service for customers.
“2020 has been a difficult year for all of us, not least the UK high street,” Huawei Technologies director Sir Andrew Cahn said.
“Huawei has faced its own challenges in the UK, but we remain as committed as ever to serving the UK market and in particular our legions of customers who enjoy our retail products.
“This wonderful new store, and the opportunities it creates, is a great sign of that commitment, our faith in Westfield and business in the UK as a whole.”
Huawei Business Group’s chief executive Anson Zhang added: “The UK is a hugely important market for us, and we’re pleased to be able to offer customers the opportunity to pick up new technology in-store, in addition to a superior customer service experience.
“As well as being a key milestone for Huawei in the UK, we’re excited that this will open up more jobs to Stratford residents and help support the British economy.”
Frasers Group to open brand new multi-brand fascia
Frasers Group has unveiled plans to open a 60,000sq ft multi-brand flagship store in Birmingham city centre, as part of a strategy that will see key strategic flagship stores open around the UK. Slated to open on New Street in spring/summer next year, the new four-storey store will house the firm’s Sports Direct, USC, Evans Cycles and Game fascias, as well as a Belong esports arena. “This new location in Birmingham demonstrates our confidence in our elevation strategy and commitment to opening premium retail destinations across the UK,” Frasers Group head of elevation Michael Murray said. “This will be our most advanced store to date offering our multiple sporting and lifestyle brands alongside specialised services and leisure facilities. “As we continue to grow throughout the UK, our ethos and commitment remains the same; we offer customers the very best brands and an unrivalled product choice.” He added: “Our new Birmingham flagship will be one of the first stores to fully showcase the synergies of many of the group’s acquisitions over the past few years, showing further confidence in our strategy to elevate the sporting goods industry. “At a time of great uncertainty, we are proud to be one of the few retailers investing in British High Street and creating job opportunities.”
Second wave batters H&M fourth-quarter sales
H&M has posted a decline in quarterly sales as the second wave of the Covid-19 pandemic had an impact on its recovery. The world’s second-biggest fashion retailer said sales in the quarter fell to 52.5 billion krona (£4.68 billion) from 61.7 billion krona a year earlier, with sales in local currencies down 10 per cent. H&M noted an accelerating slowdown towards the end of the September-November period as the second wave prompted a fresh round of lockdowns in its markets. “Between 22 October and 30 November sales decreased by 22 per cent compared with the corresponding period last year, as the recovery transitioned into a new slowdown as a result of the pandemic’s second wave,” H&M said. Meanwhile, full year 2020 net sales came in at 187 billion krona (£16.67 billion), down from 232.7 billion krona (£20.75 billion) in 2019. H&M Group, which operates Arket, Cos, & Other Stories, Weekday, and H&M itself, said it started the year strongly and with a positive momentum until Covid-19 gripped the world in a pandemic and forced many countries into its first round of lockdowns. The Swedish retail giant said restrictions involving temporary store closures and large drops in customer footfall led to a significant decrease in sales, particularly in the second quarter. H&M added that it enjoyed strong recovery in the third quarter, and that this continued into much of the fourth quarter – before the second wave hit. H&M will reveal the full details of its annual performance in a full report to be published on January 29.
Amazon accused of failing to comply with COVID-19 safety
Amazon is being forced by California’s attorney general to provide information as part of an investigation into its worker safety conditions during the pandemic.
Xavier Becerra, who is in line to become US secretary of health and human services under Joe Biden, has accused the retailer of failing to comply with outstanding subpoenas for information.
The subpoenas are part of a state investigation into Amazon’s handling of the coronavirus pandemic launched in August.
Amazon has reportedly “delayed responding adequately to our investigation requests” relating to sick-leave policies, sanitation measures and data regarding the spread of the virus at its facilities.
Becerra has now filed a petition with the Sacramento County Superior Court to force Amazon’s hand.
“We will try to do this informally, cooperatively, but one way or the other we will get the information we need,” the Attorney General said.
Despite the escalating action, Amazon argues it has been “working cooperatively for months and their claims of noncompliance with their demands don’t line up with the facts”.
It added: “The bottom line is that we’re a leader in providing COVID-19 safety measures for our employees — we’ve invested billions of dollars in equipment and technology, including building on-site testing for employees and providing personal protective equipment.”
Amazon has faced widespread criticism for its handling of the coronavirus crisis after more than 19,000 of its staff contracted the virus.
Dixons Carphone back in profit
Booming online sales during the pandemic helped electricals retailer Dixons Carphone swing to a half-year profit as it overcame a hit from store closures during lockdowns.
The Currys PC World parent company posted statutory pre-tax profits of £45 million for the six months to October 31 against losses of £86 million a year earlier. It notched up a 16 per cent hike in like-for-like UK and Ireland electricals sales, while online sales skyrocketed 145 per cent, which offset the impact of Covid-19 restrictions on its shops. The firm, which normally makes most of its profits in the final six months of its financial year, also said current trading was buoyant. It said same-store sales increased 16 per cent in the six weeks to December 12 despite fresh lockdowns in the UK and Greece. On an underlying basis, Dixons Carphone’s interim pre-tax profits jumped to £89 million from £2 million a year earlier. Dixons Carphone said it received £103 million in furlough support for workers and business rates tax relief, but that it had not used the Job Retention Scheme since October. It has not followed the lead of a raft of retail rivals in paying back the support, but chief executive Alex Baldock insisted the company has “been responsible in our use of government support”. “We used the furlough scheme to preserve jobs in the first lockdown, and didn’t use the scheme at all in the second,” he said. “Meanwhile, leaders have taken salary cuts and waived bonuses, and we suspended the dividend.” However, Baldock said the outlook “remains uncertain”. “We’re still nowhere near our full potential. Much hard work lies ahead,” he said.
UK retail CEO's earn among the highest multiples of employees' wages
A new report has shown that UK retail chiefs earn among highest multiples of their workers’ wages. Think-tank High Pay Centre and the Standard Life Foundation found that online grocer Ocado paid its chief executive about 2600 times its average worker last year. Tesco and JD Sport were also found to have the biggest gap between pay for their chief executives and the average worker. Overall, median pay among chief executives in the FTSE 350 was 53 times that of the median employee, ranging from a ratio of 140:1 in the retail trade to 35:1 in financial services, according to the report. Ocado said last year’s pay ratio was affected by the maturing incentive scheme that resulted in chief executive Tim Steiner receiving a £58 million payout. The research uses data from the 186 FTSE 350 companies covered by the pay ratio reporting requirements, which exclude closed-end investment funds and companies with fewer than 250 UK employees. The FTSE 350 companies with the lowest pay levels at the 25th percentile point of their UK workforce include Dunelm and JD Sports. Almost a fifth of companies pay workers in the lower quartile of wages less than £20,000, according to the report. The median pay ratio of FTSE 100 CEOs to lower quartile employees is 109:1, but across the FTSE 350, the ratio sizes range from 2,820:1 to 13:1. Tesco, which has a UK workforce of more than 300,000, said it “aims to reward responsibly and fairly”. The hourly rate at the company is £9.30, above the statutory national minimum wage for over-25s of £8.72. Ocado’s basic hourly pay rates range from £9.20 to £12.65. At JD Sports, which had the second-highest ratio of chief executive to median pay, executive chair Peter Cowgill was awarded a £6 million cash bonus. Meanwhile, Dunelm said hourly-paid staff received above statutory minimum levels and a one-off £250 bonus “in recognition of their contribution throughout the Covid-19 crisis”.
Hamleys to launch entire range on eBay
Hamleys is set to launch its entire range of toys on Ebay’s marketplace for the first time as it seeks to expand its online presence in the face of the pandemic.
The world’s oldest toyshop, launched in 1760, is hoping to modernise its operations by launching more than 1600 products on Ebay.
As its flagship Regent Street store prepares for a further drop in footfall as London enters Tier 3 restrictions, Hamleys is hoping to entice shoppers online by offering discounts of up to 40 per cent until December 22.
This will be a welcome boost for both companies, with Ebay’s toy category proving one of its most popular over this year’s Black Friday, seeing sales rise 58 per cent.
Hamleys meanwhile, has been hit extra hard throughout 2020 due not only to extended store closures but also the sharp reduction in international tourists, which provide a significant portion of its sales throughout the year.
In October Hamleys confirmed that 60 of its 208 staff working in its Regent Street store and at its headquarters would be let go.
“So many of us will have a special memory about Hamleys – as a child and spending an afternoon of play in one of their stores, or as a family visiting its famous Christmas grotto,” Ebay UK’s general manager Murray Lambell said.
“As the pandemic continues to disrupt the high street, we’re pleased that we can give iconic brands like Hamleys another online shop window, bringing the magic of their experience in-store to reach the millions of customers we have in the UK and worldwide.”
Lidl as prices ruled misleading
The advertising watchdog has ruled that Lidl’s recommended retail prices in its ads were misleading, following a complaint from Aldi. Lidl ran a series of ads in April and May this year on its own website and in leaflets, featuring prices of general merchandise special offers alongside claimed rrps. The products included a Black & Decker cordless strimmer priced at £69.99 with a claimed rrp of £99.99, and a Salter sandwich toaster at £14.99 with an rrp of £49.99. Rival Aldi launched a complaint that the claimed rrps differed from the prices at which the featured products were generally sold. Lidl responded by saying its approach to rrps was based on Chartered Trading Standards Institute guidance and information from the products’ manufacturers. It pointed to claimed rrps on manufacturers’ and competitors’ websites which were around the same as those in its ads and dated from the same time. Lidl also provided evidence from September 2020 of selected products being sold at the same rrps by third parties. However, the Advertising Standards Authority found that consumers understand rrp claims to refer not just to manufacturer recommendations but also to the price at which retailers generally sold the goods across the market. It also said Lidl had not provided enough evidence to suggest the products were generally sold at the prices found in its ads. The watchdog said the rrp and savings claims in the ads had not been substantiated and were misleading. It has since ordered Lidl not to publish the ads again in the form complained about and ensure that claimed rrps reflect prices at which the products are generally sold in future ads.
Avoid Boxing Day sales crowds, says PM
Prime Minister Boris Johnson has urged shoppers to avoid Boxing Day crowds as daily new cases of Covid-19 remains high. The PM warned bargain-hunters to “think carefully” before finding themselves among big crowds on what is traditionally one of the busiest shopping days of the year. However, some retailers have said December 26 sales will be spread over multiple days, therefore overcrowding can be avoided. Addressing the Downing Street press conference yesterday afternoon, Johnson said: “Whatever your plans for Christmas, please think carefully about avoiding crowds in the Boxing Day sales. “And no one should be gathering in large groups to see in the new year.” Jace Tyrrell, chief executive at New West End Company – which represents 600 businesses and retailers in London’s shopping district – said they were encouraging customers to be flexible this year for the sales. “As the Prime Minister stated today, this Christmas certainly will be different, and that includes all the festive trimmings, including Boxing Day. “Aside from the Prime Minister’s comment today, many hard hit retailers have been forced to start their usual Boxing Day sales before Christmas, to try and muster up lost spend over the past year. “What this means is that there will be no one day for customers to hit the sales this year, but many weeks. “With this, we encourage our customers to be flexible and to enjoy their sales shopping beyond just boxing day to avoid any potential overcrowding. “The West End is, and will, remain open to those who wish to visit. “With increased social distancing signage, hand sanitisation points and face coverings being handed out at key stations, we have worked with partners to make the West End a safe environment and we trust our valued customers to respect the safety of others to ensure that our businesses can continue to trade through this vital season.” Johnson’s warning came shortly after Welsh First Minister Mark Drakeford said Wales would go back into full lockdown for the third time from December 28, although non-essential retailers will be closed from end of business on Christmas Eve.
Watches of Switzerland profits rise as Covid-19 boosts online demand
Watches of Switzerland has reported a rise in its half-year profits after online demand increased during the Covid-19 crisis. The luxury watch retailer posted a 26.5 per cent uplift in adjusted EBITDA to £52.2 million in the 26 weeks to October 25. On a statutory pre-tax basis, the retailer recorded a profit of £36.2 million compared to a £9 million loss during the first half of last year.
Total sales dropped 2.6 per cent on a constant currency basis to £428.7 million thanks to forced lockdowns and other restrictions on non-essential retailers. Watches of Switzerland said its stores were only able to trade for 59 per cent of their total hours during the first half. However, online sales rose 65.4 per cent during the six-month period to offset some of the sales lost through its store portfolio. Sales in the UK market were down 7.4 per cent during the period due to a drop in tourist numbers affecting footfall. In the US, revenues rose 11 per cent and was boosted by the acquisition of pre-owned watch business, Analog Shift. Meanwhile, Watches of Switzerland hailed “strong trading” during its second quarter, when revenues rose 21.5 per cent in constant currency terms, and said its third quarter had gotten off to a “stronger than anticipated start”. On a constant currency basis, group sales were up 11.9 per cent in the seven weeks to December 13, with the UK registering a 7.7 per cent uptick and the US growing 22.7 per cent. Watches of Switzerland now expects full-year revenues to come in between £900 million and £925 million, compared to previous guidance of £880 million to £910 million. EBITDA margin is expected to increase between 1.5 per cent and two per cent compared to 2019/20. It had previously forecast an increase in the region of one per cent to 1.5 per cent. Watches of Switzerland now plans to repay furlough support received from the government. “Despite significant headwinds throughout the period, we achieved a good sales performance with domestic customers offsetting lower tourist and airport sales in the UK, and elevated momentum in the US,” chief executive Brian Duffy said. “As a result of our stronger than anticipated first half performance and positive trading in the first part of Q3, we have revised our full year guidance upwards. “Our guidance assumes some further negative trading impact from potential lockdown measures in January and February 2021. “We have also taken into account the removal of tax-free shopping in the UK from January 1, 2021. “We believe that the UK Government has misjudged the impact of removing tax-free shopping for tourists and we will continue to support all efforts to have this changed.”
Amazon has pocketed 40% of all new online spend during the pandemic
Amazon has pocketed a whopping 40 per cent of the entire £5 billion new online spend seen through the pandemic.
The online retailer, which recently said it has had its “biggest holiday season to date”, has increased its market dominance to even greater heights throughout 2020, MPs have heard.
Shadow business minister Chi Onwurah yesterday called on the government to make “firm commitments” to small businesses who are afraid they won’t survive the winter in a market so heavily weighted towards one company.
Onwurah asked MPs during business departmental questions in the Commons to provide “not vague promises, but firm commitments” to small businesses across the UK.
“Of the £5 billion of new online spend because of the pandemic, 40% has gone to one website – Amazon,” she said.
“Many small businesses are afraid they won’t make it through the winter because of the lack of Government support and they have Brexit, climate and technological change to deal with too.
“So I want to ask the minister, what is the plan for small businesses to survive Covid and build back smarter and greener?”
In response, business minister Nadhim Zahawi said that the government is spending £300 million as part of its Made Smarter initiative to “support technology adoption into manufacturing” and assist smaller companies.
Zahawi added: “I think (Ms Onwurah), as a fellow engineer, will know that the Made Smarter initiative has been a tremendous pilot in the North West and we recently announced a further expansion with £300 million – £147 million coming from Government and the balance coming from the private sector – to support technology adoption into manufacturing.”
According to the Bloomberg Billionaires Index, Amazon’s founder Jeff Bezos’ net worth has increased $76.1 billion to $191 billion this year, the equivalent of New Zealand’s GDP.
As Washington Post data reporter Christopher Ingraham pointed out on Twitter, Bezos could give each of his 876,000 Amazon employees a $105,000 bonus and he would still be as rich as he was at the start of the pandemic.
Lidl to increase value of Healthy Start Vouchers
Lidl has announced plans to increase the value of Healthy Start Vouchers issued to parents in England and Wales from £3.10 to £4.25. The retailer’s investment is supported by the Child Food Poverty Task Force, formed and spearheaded by footballer Marcus Rashford. From January 4 until the end of March 2021, the discounter will be topping up the value of the existing Healthy start vouchers by £1.15, providing eligible families with more to spend in stores. The vouchers will allow families that utilise the scheme to buy a range of healthy products outlined by the government including fresh, tinned, and frozen fruit, vegetables, and pulses, as well as milk, formula and vitamins Lidl said the Healthy Start top-up initiative is the first of its kind across all UK retailers and builds on the work of Rashford’s Task Force who successfully lobbied the government to increase the value of the Healthy Start vouchers from April of next year. It said it will invest up to £1 million to plug the gap between January 2021 and the planned government increase in the value of the vouchers to £4.25 in April 2021. “At Lidl, we know that it has been a challenging year for families and budgets are tight,” Lidl chief executive Christian Härtnagel said. “We all have a role to play within the community and we are committed to helping these families in any way we can. “This is why we have decided to bring forward the planned increase to the value of the Healthy Start vouchers across all our stores in England and Wales. “We hope that it will enable parents up and down the country to access more healthy essentials to help feed their children.” Rashford: “I’m delighted that Lidl has made such a positive move and committed to increasing the value of Healthy Start vouchers. “This was one of our Taskforce’s key asks and will make a huge difference to the most vulnerable people in our communities. “We were thrilled when the government committed to increasing the value of Healthy Start vouchers from April next year, however there is an urgent need to act now. “Lidl’s decision to take action and support families and those in need further demonstrates what can be achieved when we work together. I would encourage all parents and families that need that extra support to sign up to the government’s scheme.” Lidl also revealed its new ‘Teaming up to Tackle Hunger’ scheme, which will make it easier for customers to donate directly to their local community through the use vouchers – with the retailer matching every donation made until December 16. The initiative forms part of Lidl’s ongoing ‘Feed it Back’ programme, which has seen Lidl donate over six million meals to an existing network of 2400 local charities.
John Lewis Partnership completes roll-out of Covid-19 testing
John Lewis Partnership has completed the roll out of its NHS Test and Trace Covid-19 testing thanks to a partnership with the Department of Health and Social Care. Due to the trial’s initial success, testing will now be available at 40 John Lewis and Waitrose locations in England. Covid-19 testing was initially launched to the national John Lewis distribution centre at Magna Park, Milton Keynes in November. The testing roll-out was in response to Black Friday and pre-Christmas demand, which processed around 135,000 johnlewis.com orders per day during the month. Up to 1000 colleagues and temporary agency staff volunteered to be tested up to three-times a week. The testing was rolled out at Waitrose and John Lewis supply chain sites, Waitrose.com customer fulfilment centres, John Lewis textiles factory and selected Waitrose and John Lewis shops. Working closely with NHS Test and Trace, it will provide capability to test around 16,000 colleagues and temporary agency staff per week. It will provide results within 30 minutes and feeds directly into the national testing database. “We’re proud to have helped develop and establish a testing scheme that contributes towards the UK’s fight against Covid-19,” John Lewis Partnership Executive Director for Operations Andrew Murphy said. “We already have a wide range of measures in place to keep our Partners and customers safe and rapid testing builds on this at our busiest time of the year.”
Next in takeover talks with Arcadia Group
Next is reportedly in advanced discussions with Sir Philip Green’s Arcadia Group about a takeover deal. The fashion retailer, along with US investment firm Davidson Kempner are both in talks about a potential joint bid. The two companies are currently in detailed discussions about a combined offer for Arcadia, which collapsed into administration last month, Sky News reported. Arcadia’s administration put up to 13,000 jobs at risk, and follows the demise of Cath Kidston, Oasis and Warehouse and Debenhams. Green appointed administrators from Deloitte after talks with a number of lenders about an emergency £30 million loan hit a dead end. Next and Davidson Kempner said on Friday they were “likely, but not certain” to bid for Arcadia, which owns Topshop, Burton and Miss Selfridge, ahead of a revised deadline next Monday. Under the discussed plans, the US-based firm would provide the majority of the funding required to complete a takeover. Davidson Kempner would probably own the majority of the business after any deal. A sale process being run by Deloitte, Arcadia’s administrator, has drawn interest from bidders including Mike Ashley’s Frasers Group, Authentic Brands, and Boohoo.