Topic: Carillion scrambles to stay afloat

[killer-heels]

Where will the old have their cakes now?

[Zeppelin]

With the latest news about the new Royal needing repair work due to Carillion's sub-standard building, I hope the Main Stand has had proper checks!

[moondog]

With the latest news about the new Royal needing repair work due to Carillion's sub-standard building, I hope the Main Stand has had proper checks!
[/quo




Had proper test when we battered Barcelona, if it didn't fall to bits that night it never will. Fuck Carillion.

[Medellin]

Ex-Carillion bosses being paid by Royal Liverpool Trust over stalled hospital

https://www.liverpoolecho.co.uk/news/liverpool-news/ex-carillion-bosses-being-paid-16414553#ICID=Android_EchoNewsApp_AppShare

[ShakaHislop]

Kier to cut 1,200 jobs as it seeks to cut costs

Troubled construction and services firm Kier has said it will cut 1,200 jobs as it seeks to make cost savings of £55m a year by 2021.

The cuts came as the firm's boss announced a plan to simplify Kier's business and reduce its debt.

The company will sell its homebuilding business, Kier Living, and will shut or sell other interests, including its recycling and rubbish processing units.

Kier will now focus on activities such as construction and road maintenance.

Shares in the company have fallen by more than 85% in the past year, and they fell a further 9% in early trading on Monday, to about 119p.

"These actions are focused on resetting the operational structure of Kier, simplifying the portfolio, and emphasising cash generation in order to structurally reduce debt," said chief executive Andrew Davies, who took over the role in April this year.

"By making these changes, we will reinforce the foundations from which our core activities can flourish in the future, to the benefit of all of our stakeholders."

The company's woes are having ramifications beyond the construction world. The share price fall has affected its largest investor, Woodford Investment Management, which had to suspend its flagship fund after some of its investments lost value and investors withdrew their cash.

Of the 1,200 jobs being lost, Kier said 650 of the posts would have gone by the end of this month, while the remaining 550 jobs are expected to go next year.

The company added that several potential suitors had already expressed an interest in its Kier Living business.

Two weeks ago, shares in Kier tumbled more than 22% after the company issued a profit warning.

At the time it said underlying profit would be about £25m below previous expectations. It blamed higher costs and problems at units in its road, utilities and housing maintenance businesses.

https://www.bbc.co.uk/news/business-48660513

[ShakaHislop]

Boots store closures 'right thing to do'

Boots has confirmed it will close 200 stores with the chain's boss saying it's "the right thing to do" in the current tough trading conditions.

Local pharmacy stores - where there is another store near by - will be most affected by the closures, Boots said.

The retailer said there would be little impact on staff, with "the overwhelming majority" redeployed to nearby shops.

It is now deciding which shops will close, but said most people would still be within a 10-minute drive of a Boots.

The chain currently has 2,485 stores across the UK, employing about 56,000 staff.

The retailer said last month it was considering store closures in an attempt to cut costs.

Most of the stores that are due to be closed are understood to be loss-making, with around two-thirds within walking distance of other Boots stores.

"There's no doubt that trading conditions are tough on the High Street and healthcare and retail are facing a challenging reality. Boots is not immune to these pressures," said Boots managing director Sebastian James.

He said the chain - which has its headquarters in Nottingham - had to take "some tough decisions" to transform the business and ensure future growth.

The news comes the day after the chain opened the first of a new-style store aimed at drawing in more shoppers.

The shop in Covent Garden, central London, features a YouTube studio offering video makeovers and an Instagram-zone where people can take pictures of their purchases.

Parent company Walgreens Boots Alliance said on Thursday that quarterly sales at its UK stores had fallen slightly compared with the previous year.

Analysts argue the chain has been slow to modernise, with a lack of investment in stores and high prices putting off shoppers.

But Mr James - who was parachuted in last year to turn the company's fortunes around - said the retailer's focus was now on making stores "more differentiated and personalised, with the best brands at the best value".

He said the Covent Garden store would set the new standards for its transformation plan.

https://www.bbc.co.uk/news/business-48797246

[CraigDS]

to be honest it probably is the right call given rent prices. Liverpool has 6 either in the centre, or within a 5 minute walk of the centre. Another 8 within a very short bus/taxi/car ride.

[Iska]

https://www.bbc.co.uk/news/business-48868335
4,500 jobs at risk as William Hill axes 700 stores

Change in policy responsible here (if the fixed-odds explanation is taken at face value) rather than a deteriorating economy, so it’s hard to see this as bad news imo.

[Jiminy Cricket]

https://www.bbc.co.uk/news/business-48868335
4,500 jobs at risk as William Hill axes 700 stores

Change in policy responsible here (if the fixed-odds explanation is taken at face value) rather than a deteriorating economy, so it’s hard to see this as bad news imo.

Hard for me to call them 'stores'. There is no tangible product for sale. 'Gambling dens' would be more apt. I agree, hard to see betting shops closing as 'bad news'. On the other hand, it only represents a shift to online gambling, with fewer people gainfully employed.

[ShakaHislop]

This c*nt, like the (now former) Patisserie Valerie boss, is a Brexit supporter.

Job cuts planned at troubled Woodford investment firm

The firm of well-known fund manager Neil Woodford is planning redundancies after investors pulled billions of pounds from his flagship fund.

The cuts are expected to affect a small number of support staff, rather than staff managing investments.

Woodford Investment Management employs around 45 people.

Despite the suspension of the flagship fund and the job cuts, the firm continues to charge £65,000 per day in management fees.

The suspension of the Woodford Equity Income Fund in June caused an outcry among investors.

Mr Woodford suspended the fund last because it could not meet requests from investors to withdraw their money.

Link Fund Solutions, which administers the fund, said this week that Woodford's flagship would remain suspended, without giving a reopening date.

The firm is selling the fund's less liquid and unlisted assets, which cannot quickly be turned into cash, in favour of more liquid stocks, so that it can reopen.

Mr Woodford has faced criticism from investors, regulators and MPs for continuing to charge fees while the fund is suspended.

The fund's £65,000 a day management fee "covers a wide range of costs associated with running an actively managed fund," the firm said in a bulletin for financial advisers.

"This includes the cost of fund management and also covers the costs of infrastructure and the staff across our entire business who are involved in running the fund."

In the days following the equity income fund suspension, the firm lost the right to manage nearly £4bn.

"We have reluctantly entered into redundancy consultations with a number of staff to advise them that their roles are at risk," a spokesman for the firm said.

The firm manages a second, smaller open-ended fund, the income focus fund, as well as the listed Woodford Patient Capital Trust (WPCT).

The income focus fund, which does not invest in unlisted firms, has seen assets under management drop by nearly 40% to £295m since the suspension of the main fund, according to Morningstar data.

WPCT shares have dropped by more than 25% since the flagship fund suspension, though they were up 3.4% on Wednesday.

https://www.bbc.co.uk/news/business-48865456

[killer-heels]

This c*nt, like the (now former) Patisserie Valerie boss, is a Brexit supporter.

Job cuts planned at troubled Woodford investment firm

The firm of well-known fund manager Neil Woodford is planning redundancies after investors pulled billions of pounds from his flagship fund.

The cuts are expected to affect a small number of support staff, rather than staff managing investments.

Woodford Investment Management employs around 45 people.

Despite the suspension of the flagship fund and the job cuts, the firm continues to charge £65,000 per day in management fees.

The suspension of the Woodford Equity Income Fund in June caused an outcry among investors.

Mr Woodford suspended the fund last because it could not meet requests from investors to withdraw their money.

Link Fund Solutions, which administers the fund, said this week that Woodford's flagship would remain suspended, without giving a reopening date.

The firm is selling the fund's less liquid and unlisted assets, which cannot quickly be turned into cash, in favour of more liquid stocks, so that it can reopen.

Mr Woodford has faced criticism from investors, regulators and MPs for continuing to charge fees while the fund is suspended.

The fund's £65,000 a day management fee "covers a wide range of costs associated with running an actively managed fund," the firm said in a bulletin for financial advisers.

"This includes the cost of fund management and also covers the costs of infrastructure and the staff across our entire business who are involved in running the fund."

In the days following the equity income fund suspension, the firm lost the right to manage nearly £4bn.

"We have reluctantly entered into redundancy consultations with a number of staff to advise them that their roles are at risk," a spokesman for the firm said.

The firm manages a second, smaller open-ended fund, the income focus fund, as well as the listed Woodford Patient Capital Trust (WPCT).

The income focus fund, which does not invest in unlisted firms, has seen assets under management drop by nearly 40% to £295m since the suspension of the main fund, according to Morningstar data.

WPCT shares have dropped by more than 25% since the flagship fund suspension, though they were up 3.4% on Wednesday.

https://www.bbc.co.uk/news/business-48865456

Unlucky. Iceland next please. Then Next. Nail the Brexiteers.

[ShakaHislop]

Unlucky. Iceland next please. Then Next. Nail the Brexiteers.

Tory-run Kent County Council has over a quarter of a billion pounds that it can't access in Woodford's fund too.

https://www.kentonline.co.uk/kent/news/council-hit-by-delay-in-fight-to-reclaim-263m-pension-investment-207739/

[ShakaHislop]

Sports Direct delays results as House of Fraser trading 'uncertain'

Shares in Mike Ashley's Sport Direct have fallen sharply after it delayed its results, citing uncertainty about trading its House of Fraser chain.

The company, whose results were due on Thursday, added the delay was also due to its auditor, Grant Thornton, facing increased scrutiny of its work for Sports Direct.

Sports Direct also indicated that it may not achieve its profits forecast.

The firm's results will now be released between 26 July and 23 August.

In December, when Sports Direct published its half-year results, it said that, excluding House of Fraser, operating profits were expected to grow by between 5% and 15%.

But in its latest update, the company said: "There are a number of key areas to conclude on which could materially affect the guidance given in Sports Direct announcement of 13 December".

Around that time, Mr Ashley had described trading as "unbelievably bad".

Trading has continued to be difficult for retailers. The British Retail Consortium said on Monday that there had been a "summer slump", with footfall on High Streets in June dropping 2.9%.

News of the delay in Sports Direct's results sent its shares down more than 10%.

Mike Ashley owns huge swathes of the High Street, although not all through Sports Direct in which he owns a 62% stake.

As well as buying House of Fraser for £90m last year - saying he wanted to turn it into the "Harrods of the High Street" - he has also bought Evans Cycles and owns several sportswear brands, the upmarket clothing outlets Flannels and Cruise, as well as lingerie firm Agent Provocateur.

His expansion efforts continued on Monday when Sports Direct also announced it was close to taking control of Game Digital.

But his ambitions are not always achieved. Earlier this year, he had tried to have himself installed as chief executive of Debenhams, but instead had his stake in the chain wiped out when the retailer was rescued by its lenders.

Mr Ashley has also failed to take over music retailer HMV and pulled out of the bidding for Patisserie Valerie.

Goals Soccer Centres, the five-a-side football operator in which Sports Direct has an 18% stake, has had accounting issues and issued profits warnings.

Analysts at the stockbroker Peel Hunt are concerned the acquisition spree is putting too much pressure on management.

"Let's be clear: we think Mike Ashley is a genius when it comes to sports retail. No doubt about it," they say in a research note.

"However, to make an analogy, he's trying to coach the England football team whilst running the netball, the tennis and the chess team as well.

"Unfortunately for him, his key lieutenants are starting to jump ship: Karen Byers, who has been instrumental in the growth of the core business, has left and that is another savage blow," they added.

Cameron Olsen, company secretary, who worked for Mike Ashley for 15 years, is also leaving, according to reports.

"House of Fraser is clearly in a degree of disarray, it would appear that the finance department is under-staffed to cope with the array of acquisitions, and we are also concerned about the direction of the core business," the Peel Hunt analysts said.

Independent retail analyst Nick Bubb described the announcement from Sports Direct about the delay to its results as "devastating".

"The company hasn't updated the City since its interims in December and House of Fraser is clearly a disaster area, so this is a serious situation," he said.

As well as citing the "complexities of integration into the company of House of Fraser", as one the factors behind the delay to its results, Sports Direct also pointed to "increased regulatory scrutiny of auditors".

Sports Direct said that other companies' audits were also taking longer, and Mr Bubb noted that Superdry has delayed its results earlier this month due to complexities in the figures.

The accounting regulator, the Financial Reporting Council, had looked into Grant Thornton's audit of Sports Direct's 2018 results as part of its annual review process.

The regulator found that, overall, 50% of Grant Thornton's audits were below the acceptable standard.

"These factors have led to a need for the company to compile more information than in previous years," Sports Direct said.

"Sports Direct would note that its core principles in regards to its financial statement are be conservative, consistent and simple," it added.

https://www.bbc.co.uk/news/business-48987449

[Red Beret]

With the latest news about the new Royal needing repair work due to Carillion's sub-standard building, I hope the Main Stand has had proper checks!

Remember that one guy who managed to hold the whole development up for years as a PFI protest?  Wonder if he's feeling smug right about now?

Wondering if it's a good thing Carillion had to abandon the project when they did, as these defects might have otherwise gone unnoticed and led to a rapid deterioration in the buildings.

[cdav]

Sports Direct delays results as House of Fraser trading 'uncertain'

Shares in Mike Ashley's Sport Direct have fallen sharply after it delayed its results, citing uncertainty about trading its House of Fraser chain.

The company, whose results were due on Thursday, added the delay was also due to its auditor, Grant Thornton, facing increased scrutiny of its work for Sports Direct.

Sports Direct also indicated that it may not achieve its profits forecast.

The firm's results will now be released between 26 July and 23 August.

In December, when Sports Direct published its half-year results, it said that, excluding House of Fraser, operating profits were expected to grow by between 5% and 15%.

But in its latest update, the company said: "There are a number of key areas to conclude on which could materially affect the guidance given in Sports Direct announcement of 13 December".

Around that time, Mr Ashley had described trading as "unbelievably bad".

Trading has continued to be difficult for retailers. The British Retail Consortium said on Monday that there had been a "summer slump", with footfall on High Streets in June dropping 2.9%.

News of the delay in Sports Direct's results sent its shares down more than 10%.

Mike Ashley owns huge swathes of the High Street, although not all through Sports Direct in which he owns a 62% stake.

As well as buying House of Fraser for £90m last year - saying he wanted to turn it into the "Harrods of the High Street" - he has also bought Evans Cycles and owns several sportswear brands, the upmarket clothing outlets Flannels and Cruise, as well as lingerie firm Agent Provocateur.

His expansion efforts continued on Monday when Sports Direct also announced it was close to taking control of Game Digital.

But his ambitions are not always achieved. Earlier this year, he had tried to have himself installed as chief executive of Debenhams, but instead had his stake in the chain wiped out when the retailer was rescued by its lenders.

Mr Ashley has also failed to take over music retailer HMV and pulled out of the bidding for Patisserie Valerie.

Goals Soccer Centres, the five-a-side football operator in which Sports Direct has an 18% stake, has had accounting issues and issued profits warnings.

Analysts at the stockbroker Peel Hunt are concerned the acquisition spree is putting too much pressure on management.

"Let's be clear: we think Mike Ashley is a genius when it comes to sports retail. No doubt about it," they say in a research note.

"However, to make an analogy, he's trying to coach the England football team whilst running the netball, the tennis and the chess team as well.

"Unfortunately for him, his key lieutenants are starting to jump ship: Karen Byers, who has been instrumental in the growth of the core business, has left and that is another savage blow," they added.

Cameron Olsen, company secretary, who worked for Mike Ashley for 15 years, is also leaving, according to reports.

"House of Fraser is clearly in a degree of disarray, it would appear that the finance department is under-staffed to cope with the array of acquisitions, and we are also concerned about the direction of the core business," the Peel Hunt analysts said.

Independent retail analyst Nick Bubb described the announcement from Sports Direct about the delay to its results as "devastating".

"The company hasn't updated the City since its interims in December and House of Fraser is clearly a disaster area, so this is a serious situation," he said.

As well as citing the "complexities of integration into the company of House of Fraser", as one the factors behind the delay to its results, Sports Direct also pointed to "increased regulatory scrutiny of auditors".

Sports Direct said that other companies' audits were also taking longer, and Mr Bubb noted that Superdry has delayed its results earlier this month due to complexities in the figures.

The accounting regulator, the Financial Reporting Council, had looked into Grant Thornton's audit of Sports Direct's 2018 results as part of its annual review process.

The regulator found that, overall, 50% of Grant Thornton's audits were below the acceptable standard.

"These factors have led to a need for the company to compile more information than in previous years," Sports Direct said.

"Sports Direct would note that its core principles in regards to its financial statement are be conservative, consistent and simple," it added.

https://www.bbc.co.uk/news/business-48987449

Just released their results- regret buying HOF and being chased by the Belgian Tax Authorities for £600m in unpaid tax. Ashley blaming everyone else it seems

[Iska]

Just released their results- regret buying HOF and being chased by the Belgian Tax Authorities for £600m in unpaid tax. Ashley blaming everyone else it seems

I was trying and failing to unpick this this morning.  What’s the story here?  Is it Sports Direct itself on the brink, or just some of its operations?

[ShakaHislop]

I was trying and failing to unpick this this morning.  What’s the story here?  Is it Sports Direct itself on the brink, or just some of its operations?

I think the main story is that House of Fraser is still struggling despite Ashley's takeover.

Analysis

By Simon Gompertz, BBC personal finance reporter

With the benefit of hindsight, buying House of Fraser looks to Mike Ashley like buying a millstone and tying it around his own neck.

He paid £90m to the administrators and has seen his Sports Direct profits reduced by £51m since then. That's been the cost of keeping House of Fraser going.

Now a cull of the stores is about to start. There are still 54. Not many have gone while he tested which ones had a future.

Some carried on losing money even after he had bullied the landlords into charging zero rent.

Mr Ashley warned that there is going to be "a lot of store closures" in the coming months, with smaller outlets in smaller towns most at risk.

When I asked him if that meant most House of Fraser stores would be shut down, he answered "no" but it is clear that thousands of jobs could be in danger.

The overall Sports Direct group still seems to be doing OK, although that £600m tax bill from the Belgians obviously won't be welcomed.

For the year to 28 April, underlying profits at Sports Direct dropped by 6% to £287.8m.

However, taking out House of Fraser, Sports Direct's income rose by 10.9%.

Total full-year sales grew by 10.2% to £3.7bn.

https://www.bbc.co.uk/news/business-49133626

[ShakaHislop]

This c*nt, like the (now former) Patisserie Valerie boss, is a Brexit supporter.

Job cuts planned at troubled Woodford investment firm

The firm of well-known fund manager Neil Woodford is planning redundancies after investors pulled billions of pounds from his flagship fund.

The cuts are expected to affect a small number of support staff, rather than staff managing investments.

Woodford Investment Management employs around 45 people.

Despite the suspension of the flagship fund and the job cuts, the firm continues to charge £65,000 per day in management fees.

The suspension of the Woodford Equity Income Fund in June caused an outcry among investors.

Mr Woodford suspended the fund last because it could not meet requests from investors to withdraw their money.

Link Fund Solutions, which administers the fund, said this week that Woodford's flagship would remain suspended, without giving a reopening date.

The firm is selling the fund's less liquid and unlisted assets, which cannot quickly be turned into cash, in favour of more liquid stocks, so that it can reopen.

Mr Woodford has faced criticism from investors, regulators and MPs for continuing to charge fees while the fund is suspended.

The fund's £65,000 a day management fee "covers a wide range of costs associated with running an actively managed fund," the firm said in a bulletin for financial advisers.

"This includes the cost of fund management and also covers the costs of infrastructure and the staff across our entire business who are involved in running the fund."

In the days following the equity income fund suspension, the firm lost the right to manage nearly £4bn.

"We have reluctantly entered into redundancy consultations with a number of staff to advise them that their roles are at risk," a spokesman for the firm said.

The firm manages a second, smaller open-ended fund, the income focus fund, as well as the listed Woodford Patient Capital Trust (WPCT).

The income focus fund, which does not invest in unlisted firms, has seen assets under management drop by nearly 40% to £295m since the suspension of the main fund, according to Morningstar data.

WPCT shares have dropped by more than 25% since the flagship fund suspension, though they were up 3.4% on Wednesday.

https://www.bbc.co.uk/news/business-48865456

Why is this legal?

Woodford flagship fund set to stay locked until December

Well-known stockpicker Neil Woodford's flagship fund is likely to remain locked to investors for several months, it has been confirmed.

The suspension of his Woodford Equity Income Fund is unlikely to be lifted until December.

Mr Woodford told investors he was sorry for their "frustration, inconvenience and anxiety" over the suspension.

Investors in the Equity Income Fund have not been able to access their money since 3 June.

The latest update on the suspension was revealed by the fund's authorised corporate director Link Fund Solutions in a letter to investors. Link has to review the suspension every 28 days.

Link said it considered that a suspension until December would give the manager time to reposition the fund's portfolio into more liquid assets,

"In our view, this is a realistic amount of time for Woodford to complete a measured and orderly re-positioning of the Fund's portfolio of assets, ensuring that there is adequate liquidity whilst preserving or realising the value of the assets," Link said.

"We have concluded that this approach would represent the best outcome in terms of value, time and equal treatment for all investors. Importantly, it would allow all investors to choose whether they wish to remain invested in or to withdraw their investments from the fund."

Mr Woodford said that he anticipated the fund would reopen in early December "as we navigate through the changes to the portfolio previously articulated".

"I understand the frustration, inconvenience and anxiety the continued suspension of the fund will be causing you and I am extremely sorry for putting you in this situation," he added.

Ryan Hughes, head of active portfolios at investment platform AJ Bell, said: "This gives much-needed clarity for investors but they are likely to remain concerned.

"The fact that Link and Woodford have given a timeframe suggests they have some confidence in the fund re-opening in December, but this will still mark six months of fund suspension that investors have had to navigate."

Withdrawals were frozen in early June after rising numbers of investors asked for their money back.

Mr Woodford is one of the UK's biggest names in stockpicking - which is when a fund manager analyses the potential of different stocks to try to decide whether or not they will make a good investment.

He was widely celebrated for previous success and was backed until the suspension by huge investment supermarket Hargreaves Lansdown - but both now face questions over how business was conducted, amid criticism from investors.

Fund investor Gus Harris-Reid, from Edinburgh, told the BBC he had not expected the fund to be reopened on Monday.

He said: "As many have been calling for, I would like to see Woodford cease charging management fees, or at least reduce them, until the fund reopens."

When the fund launched five years ago, Mr Woodford's previous record meant thousands of investors trusted him with their money.

At its peak, the Woodford Equity Income Fund managed £10.2bn worth of assets, such as local authority pension funds.

In its first year, there were returns of 18% on investors' money, compared with an average rise of only 2% on the London Stock Exchange at the time.

However, far from uniquely, this was followed by struggles in the past couple of years.

As a result, the fund has brought very little return for investors who have been in it throughout. Figures from FE Analytics show the fund has made a total return of 0.36% since its launch.

https://www.bbc.co.uk/news/business-49151546

[ShakaHislop]

Mike Ashley wins race to buy Jack Wills

Mike Ashley has emerged at the winner in an auction to buy the UK fashion retailer Jack Wills for £12.7m.

Mr Ashley's company Sports Direct has bought Jack Wills out of administration after competing against Edinburgh Woollen Mill Group.

It will acquire 100 Jack Wills stores in the UK and Ireland and take on 1,700 staff as part of the deal.

It is the latest in a series of struggling companies that Mr Ashley has acquired, with mixed results.

Sports Direct recently admitted that it regretted rescuing House of Fraser a year ago after discovering problems that it described as "nothing short of terminal" - and that it will have to close more stores.

Commenting on Jack Wills, Sports Direct said: "We will look to work with the landlords to reduce the rents to keep as many stores trading as possible."

The company has 10 stores overseas and KPMG, which is the administrator to Jack Wills, is examining options for those assets.

Suzanne Harlow, chief executive of Jack Wills, said that while the company has worked on improving its financial performance: "The challenging trading environment led us to conclude that the company's long-term future would be best served as part of a larger group and Sports Direct will enable us to do this."

Jack Wills reported an operating loss of £14.2m for the year to 28 January 2018, the most recent results available.

The company will be housed in a new division at Sports Direct which will focus on buying and building fashion and sports brands.

It will report to Michael Murray, Sports Direct's head of elevation and Mr Ashley's future son-in-law who is engaged to the retail tycoon's daughter Anna.

https://www.bbc.co.uk/news/business-49241307

[Lush is the best medicine...]

Just killed their street cred amongst teenagers there

[ShakaHislop]

High Streets hit as shop vacancy rate worst since 2015

The number of empty shops in town centres is at its highest for four years, industry figures show.

The vacancy rate was 10.3% in July, its highest level since January 2015, according to the British Retail Consortium and Springboard survey.

Footfall also fell by 1.9% in July, the worst July performance for seven years.

Diane Wehrle, Springboard insights director, said July had been "much more challenging" for shopping centres and High Streets than out of town stores.

The survey showed that High Street footfall declined by 2.7% in July, and shopping centre footfall declined by 3.1%.

In contrast, footfall in retail parks increased by 1.2%.

Ms Wehrle added: "Consumer demand is ever-more polarised between convenience and experience, and the stronger performance of out of town destinations where footfall rose by 1.2% in July reflects the fact that retail parks are successfully bridging the convenience-experience gap.

"They not only offer consumers accessible shopping environments with free parking and easy click and collect opportunities for online purchases, but many also combine this with an enhanced experience that includes coffee shops and casual dining restaurants, and some also have leisure facilities."

In 2018, data from the Centre for Retail Research found more than 2,500 mostly medium or large retail businesses failed, and the organisation's Joshua Bamfield now expects 2019 to be worse.

The BRC said there was concern about the rise in empty store fronts.

"If the government wishes to avoid seeing more empty shops in our town centres then they must act to relieve some of the pressure bearing down on the High Street," said BRC chief executive Helen Dickinson.

"Currently, retail accounts for 5% of the economy, yet pays 10% of all business costs and 25% of all business taxes. The rising vacancy figures show this is simply not sustainable.

"We need an immediate freeze in rates, as well as fixing the transitional relief, which leads to corner shops in Redcar subsidising banks in central London."

https://www.bbc.co.uk/news/business-49311298

I know there's a lot of pretentious language in the business world but "successfully bridging the convenience-experience gap" has to be up there.

[ShakaHislop]

Turkish army pension fund set to buy British Steel

The Official Receiver is to announce this week that an investment arm of Turkey's armed forces pension fund is the preferred bidder for British Steel.

Ataer Holding would then be given several weeks to try to buy British Steel - the owner of the Scunthorpe works - out of insolvency.

British Steel was put into compulsory liquidation in May, when the Official Receiver was appointed.

Ataer owns nearly 50% of Erdemir, Turkey's biggest steel producer.

It is the investment vehicle of the Turkish Armed Forces Assistance Fund (known as Oyak), the pension fund for the country's armed forces.

Some 5,000 jobs were put at risk - and 20,000 in the supply chain - when talks broke down in May between the government and British Steel's owner, Greybull.

British Steel has about 5,000 employees. There are 3,000 at Scunthorpe, with another 800 on Teesside and in north-eastern England.

https://www.bbc.co.uk/news/business-49344054

If this happens, I can't see the UK government kicking up too much of a fuss the next time there's a clash between the Turkish government and the Kurds.

[CraigDS]

High Streets hit as shop vacancy rate worst since 2015

https://www.bbc.co.uk/news/business-49311298

I know there's a lot of pretentious language in the business world but "successfully bridging the convenience-experience gap" has to be up there.

I agree, it’s a silly term, but the point is valid. With the convenience of online shopping bricks and mortar stores need to offer a ‘shopping experiance’ to entice customers. It’s often easier for retail parks to offer this along with convenience of parking, etc.

[Nobby Reserve]

I agree, it’s a silly term, but the point is valid. With the convenience of online shopping bricks and mortar stores need to offer a ‘shopping experiance’ to entice customers. It’s often easier for retail parks to offer this along with convenience of parking, etc.

Spot on.

What people want from the 'shopping experience' has not only hugely evolved, but diverged into different things for different people and different occasions.

Partly due to the convenience of supermarkets as a place to get the vast majority of what you need, the notion of getting in the car and driving to a free car park outside of a clogged town centre, where you park within 100 yards of where you want to go, has taken hold for most people. People are - or feel - time-poor, so convenience is paramount.

For longer shopping trips - like for clothes - there are regional centres and big shopping 'malls' (Liverpool, Manchester, perhaps Warrington, Cheshire Oaks, Trafford Centre). That leaves provincial towns with sharp fall-aways in shoppers. That in turn sees major retailers move out, which leads to further reduced footfall in the town, and so the process goes on.

This is a process that's been building for 10/20 years, but the rise of online has both amplified and hastened it, and is now eating hard into the profitability of 'destination' shopping hubs.

[ShakaHislop]

Turkish army pension fund set to buy British Steel

https://www.bbc.co.uk/news/business-49344054

If this happens, I can't see the UK government kicking up too much of a fuss the next time there's a clash between the Turkish government and the Kurds.

British Steel: Hundreds of jobs could be cut to raise productivity

Several hundred jobs could be slashed at British Steel by the company’s likely new owners as part of efforts to improve its poor productivity, the Financial Times has reported.

Ataer Holdings, the investment arm of Turkey’s military pension fund Oyak, was unveiled on Friday as the preferred buyer for the steelmaker which collapsed in May. Ataer now has exclusive rights to look into British Steel in greater detail and plans to complete the purchase by the end of the year.

Toker Ozcan, head of the mining metallurgy group at Oyak, told the FT that the group’s immediate focus will be to boost output. He declined to comment on the scale of possible job losses but said productivity at British Steel’s main plant in Scunthorpe is “very low” compared with other European steel producers.

“I am not focused on headcount but on productivity,” he said. “We will take productivity to where it needs to be.”

The plans could result in several hundred job cuts, according to two people with knowledge of the talks quoted by the FT.

British Steel employs around 5,000 people, most of them in the UK. More than 3,000 work at its Scunthorpe plant.

Oyak could not be reached for comment.

The FT also reported that Ataer is in talks with the UK government about a “financial contribution” to help make British Steel’s plants greener, by converting them to run on hydrogen. First, the plants will need to switch from coal to gas, Mr Ozcan was quoted as saying.

https://www.independent.co.uk/news/business/news/british-steel-jobs-cuts-turkey-oyak-ataer-a9069131.html

Are they that viable/serious a bidder if they're already asking the UK government for handouts?

[So… Howard Philips]

British Steel: Hundreds of jobs could be cut to raise productivity

https://www.independent.co.uk/news/business/news/british-steel-jobs-cuts-turkey-oyak-ataer-a9069131.html

Are they that viable/serious a bidder if they're already asking the UK government for handouts?

So a prospective major employer in a Leave voting area, who are an arm of the Turkush military, are seeking state subsidies from the Britush Government, currently unlawful under EU law.

Wonder what the Daily Mail thinks of this!

[ShakaHislop]

So a prospective major employer in a Leave voting area, who are an arm of the Turkush military, are seeking state subsidies from the Britush Government, currently unlawful under EU law.

Wonder what the Daily Mail thinks of this!

Mr Ozcan declined to comment on the size of a potential co-investment by the government but one person close to the situation said it would likely be more than £300m for the hydrogen initiative. Any government support would have to be on commercial terms to avoid breaking EU state aid rules.

https://www.ft.com/content/3148f270-c040-11e9-89e2-41e555e96722

Was £350m per week for the NHS misunderstood, and actually referred to the National Hydrogen Subsidies?

[ShakaHislop]

Sports Direct investors rebel against Mike Ashley

Sports Direct shareholders have registered unhappiness with founder Mike Ashley, voting in large numbers against his re-election as director.

Mr Ashley owns 62% of the company, so was overwhelmingly backed to continue in the role as expected.

However, almost a quarter of independent shareholders voted against his re-election.

Sports Direct is under pressure to appoint a new auditor, but shareholders were told no decision had been made.

Mr Ashley has been criticised for a spending spree which has seen Sports Direct buy numerous struggling retailers. His retail empire includes large swathes of the High Street.

He bought House of Fraser for £90m last year saying he wanted to turn it into the "Harrods of the High Street".

Sports Direct later said it regretted the acquisition, describing problems at House of Fraser as "nothing short of terminal".

"Sports Direct has been through a very turbulent period and made a number of strange missteps," Tom Powdrill, of investor advisory group Pirc, said ahead of the meeting.

In particular he noted the House of Fraser acquisition, a delay in publishing its results, and problems appointing an auditor.

Sports Direct's relations with some investors have been turbulent for a number of years. For example, in 2016 shareholders moved to depose the then chairman Keith Hellawell.

In a statement, Sports Direct said: "Mike Ashley was re-elected... with over 90% of the vote and the audited accounts for the year ended 28 April 2019 were also approved by over 99% of shareholders."

Shareholder ISS recommended voting against Mr Ashley's re-election, citing "material failures of governance and risk oversight, many of which remain unresolved" over recent years.

Fidelity International's Maike Currie told the BBC that shareholders have questions over the firm's performance and Mr Ashley's recent shopping spree. The businessman has bought a number of ailing retailers in the last two years.

Another issue is the appointment of an auditor, after Grant Thornton resigned in August. But the meeting was told that the company is still in the process of finding a new firm.

Mr Powdrill said earlier that if Sports Direct cannot appoint an auditor by the close of the meeting, the Department for Business, Energy and Industrial Strategy has the power to step in if necessary.

Shares in Sports Direct are down by about 25% in a year, and suffered a big drop in July after the Belgian government claimed Sports Direct owed it €674m (£605m) in taxes.

Ms Currie said there were doubts over Mr Ashley's decision to buy House of Fraser and Jack Wills. There are also reports that Sports Direct is bidding for High Street jeweller Links of London.

https://www.bbc.co.uk/news/business-49660675

[ShakaHislop]

'Women hit hardest by High Street job losses'

Women have been hardest hit by the wave of job losses that has swept the retail industry since 2011, a study from the Royal Society of the Arts has found.

Of the 108,000 retail jobs lost to automation and ecommerce, 70% were among female employees, it found.

The think tank also said that regions outside London were disproportionately affected by the retail downturn.

The RSA said new jobs could be created, however, if retailers offered more "experiential" shopping.

"Our research shows that the economic pain that comes with the decline of the High Street is not being felt evenly," said Fabian Wallace-Stephens, one of the report's authors.

The UK's High Streets have come under pressure from the rise of online shopping, high business rates in some parts of the country, and the squeeze on incomes during the years since the financial crisis.

The pace of shop closures rose in the first half of 2019, with about 16 shops closing every day.

However the North East and East Midlands saw an 11% drop in the retail workforce, while London had a 16% increase, according to the RSA's report.

The RSA's study covered the years from 2011 to 2018, and found that 40,000 new warehouse and distribution jobs had been created by online retailers, but three quarters of those roles had been taken by men.

"As ever more people are shopping online, and businesses are introducing automated technology like self-service checkouts, this is changing the types of jobs available," said Fabian Wallace-Stephens, one of the report authors.

"Women are being hit particularly hard, with jobs growth being contained to roles usually filled by men such as delivery drivers.

However, the High Street's decline could be reversed if retailers began offering more exciting in-store experiences, and customer service staff became more like "in-store influencers" he argued.

An in-store "influencer" would provide a mixture of concierge and stylist roles at some retailers, or shop-floor workers in supermarkets providing nutrition or cooking demonstrations, said report co-author Alan Lockey.

The RSA report also gave the example of the Lego store in Beijing, which it said felt like one of the Danish toy giant's theme parks.

"Many of these experiences cleverly utilise new technologies such as virtual reality to immerse customers in a world made of Lego, or to envisage what customers may look like as a Lego character," the think tank said.

Helen Dickinson, chief executive of the British Retail Consortium, said it was disappointing that job losses in retail had fallen hardest on women and less affluent regions.

"If the government wishes to support less affluent regions, it should reform the broken business rate system which holds back investment in physical space, and widens regional disparities," she said.

Sophie Walker, chief executive of Young Women's Trust, said young women were losing out after being "encouraged into the sector by sexist career advice and the need to find work that fits around the caring responsibilities they disproportionately shoulder".

Around one million young women are trapped in positions of no pay or low pay, she said.

High Streets minister Jake Berry said the government was tackling the challenges facing the High Streets including putting £1bn into a Future High Streets Fund.

"We've slashed business rates by a third for many retailers - worth an estimated £1 billion - bringing the total amount of business rate support to over £13 billion and ensuring our High Streets are fit for the future," the minister said.

https://www.bbc.co.uk/news/business-49663395

[ShakaHislop]

Sir Philip Green's Topshop reports £500m loss

Sir Philip Green's Topshop and Topman fashion chains suffered an almost £500m net loss last year, amid tumbling sales and a raft of one-off charges.

Its latest accounts showed a £498.5m loss for 2018, a sharp rise on the £15.6m loss in 2017.

The results also showed that sales fell 9% to £846.7m.

The figures lay bare the extent of the problems at parent company Arcadia, which recently had to strike a rescue deal to keep its retail empire afloat.

Arcadia, which also owns other High Street names including Miss Selfridge and Burton, is shutting 48 stores and cutting rents at other outlets.

Last week, Arcadia reported a smaller loss of £169.2m for 2018, suggesting some parts of Sir Philip's empire are offsetting the poor performance of others.

However, despite the group's restructuring, Arcadia warned last week that it may need fresh funding to support its business.

In terms of sales, most of the damage last year occurred in Topshop's dominant UK business, where revenue fell by £83m.

However, it blamed most of its heavy losses on one-off charges, such as onerous shop leases on loss-making stores and writedowns on the value of assets. It also revealed a sharp fall in staff numbers, down 12% to 3,853.

There is increasing speculation that the Arcadia group could be broken up, in the hope new owners can resuscitate its brands.

Before agreeing the most recent shop closures, Arcadia had closed 200 of its UK stores over the preceding three years.

https://www.bbc.co.uk/news/business-49672761

[Devastatin' Dave]

At least £404m relates to accounting jiggery. Write off of Goodwill and Ivy Park unwind.

None the less they are in a bad state.

[CraigDS]

Thomas Cook in big trouble.

Shit for me as 5 of us have got a complaint in worth about £5k in compo and they’ve deliberately stalled things and it’s now clear why. Fucking twats.

[dudleyred]

Thomas Cook in big trouble.

Shit for me as 5 of us have got a complaint in worth about £5k in compo and they’ve deliberately stalled things and it’s now clear why. Fucking twats.

That’s shite isn’t it

We’re away in Florida and flew flight only with them. Going to be a pain in the arse sorting getting home as looks like any repatriation will be for full holidays only

[Jiminy Cricket]

Thomas Cook in big trouble.

Shit for me as 5 of us have got a complaint in worth about £5k in compo and they’ve deliberately stalled things and it’s now clear why. Fucking twats.

Is there any chance of your claim being covered by the credit card company (assuming you laid via credit rather debit card)?

[Jiminy Cricket]

That’s shite isn’t it

We’re away in Florida and flew flight only with them. Going to be a pain in the arse sorting getting home as looks like any repatriation will be for full holidays only

Same as my reply to Craig. You paid for a return flight - you did not receive the goods - ergo, a claim with the credit card provider.

[CraigDS]

Is there any chance of your claim being covered by the credit card company (assuming you laid via credit rather debit card)?

Possibly. I’ve been told that the issue would be with TC’s insurance company and could still be claimed if they went under, but not completely sure if that’s the case just yet as not looked into it.

[dudleyred]

Same as my reply to Craig. You paid for a return flight - you did not receive the goods - ergo, a claim with the credit card provider.

Will get a claim in when it happens yes. Flights will be a bun fight though. Be lucky to get out same day as planned

[I've been a good boy]

Not looking good, apparently stopping trading as of tomorrow if Twitter reports are to be believed.

[AndyMuller]

Got a three week holiday in Florida booked with TC for next year. Looks like that’s disappeared into thin air then.

[Red Beret]

When I went to Boston back in 2016 I flew via TC.  Went in the "first class" section and it was really nice, and relatively cheap too.  Gutted for everyone in here, not only for what it will cost you but also in general making travel more expensive yet again.

Hoping to go back to the States sometime next year or year after to visit friends in SC, so will be flying out to Atlanta.  Prices from Manchester via Delta or Virgin are eye watering.