Global Trade & Retail Crisis Watch

[Time_Traveller]

McColl's appoints administrators but Asda co-owners expected to agree rescue##

Friday 6 May 2022

McColl's, the convenience retailer, has collapsed but the co-owners of Asda are expected to agree a deal with administrators that would rescue the bulk of the company.

Sky's City editor Mark Kleinman, who had reported earlier on Friday that Morrisons was among interested parties, said the Issa brothers' EG Group was now waiting in the wings and a deal could be concluded later in the day.

McColl's said it took the decision to appoint PwC as administrator after its lenders objected to the potential outcome of a sale for them.

The company has 1,400 stores and employs 16,000 staff but it is hoped that a sale out of administration would preserve the vast majority of its workforce and store estate.

https://news.sky.com/story/mccolls-appo ... e-12606659

[Time_Traveller]

McColl's appoints administrators but Asda co-owners expected to agree rescue##

Friday 6 May 2022

McColl's, the convenience retailer, has collapsed but the co-owners of Asda are expected to agree a deal with administrators that would rescue the bulk of the company.

Sky's City editor Mark Kleinman, who had reported earlier on Friday that Morrisons was among interested parties, said the Issa brothers' EG Group was now waiting in the wings and a deal could be concluded later in the day.

McColl's said it took the decision to appoint PwC as administrator after its lenders objected to the potential outcome of a sale for them.

The company has 1,400 stores and employs 16,000 staff but it is hoped that a sale out of administration would preserve the vast majority of its workforce and store estate.

https://news.sky.com/story/mccolls-appo ... e-12606659

Morrisons triumphs after weekend shootout for control of McColl’s

1 hour ago

Sky News can reveal that the supermarket giant saw off eleventh-hour competition from EG Group, the petrol station operator, with an offer that will see McColl's stores and workforce preserved in their entirety.

The deal will be structured as a pre-pack administration, meaning Morrisons will buy McColl's immediately after it enters insolvency proceedings overseen by PricewaterhouseCoopers (PwC).

On Friday, Morrisons said it believed there was no reason for the corner shop empire to be declared insolvent, but the pace of events over the weekend, with McColl's teetering on the brink of collapse, left PwC with no time to finalise a solvent transaction, according to an insider close to the firm.

https://www.msn.com/en-gb/money/compani ... ar-AAX3PVM

[wjfox]

Ukraine war: World Bank boss warns over global recession

By Annabelle Liang
Business reporter

2 hours ago

The head of the World Bank has warned that Russia's invasion of Ukraine could cause a global recession as the price of food, energy and fertiliser jump.

David Malpass told a US business event on Wednesday that it is difficult to "see how we avoid a recession".

He also said that a series of coronavirus lockdowns in China is adding to concerns about a slowdown.

His comments are the latest warning over the rising risk that the world economy may be set to contract.

"As we look at the global GDP... it's hard right now to see how we avoid a recession," Mr Malpass said, without giving a specific forecast. "The idea of energy prices doubling is enough to trigger a recession by itself," he added.

https://www.bbc.co.uk/news/business-61575387

[wjfox]

‘The economy is going to collapse,’ says Wall Street veteran Novogratz. ‘We are going to go into a really fast recession.’

Last Updated: June 16, 2022 at 6:29 a.m. ET

Veteran investor and bitcoin bull Michael Novogratz doesn’t have a rosy outlook on the economy, which he described as headed for a substantial downturn, with the likelihood of a “fast recession” on the horizon.

“The economy is going to collapse,” Novogratz told MarketWatch. “We are going to go into a really fast recession, and you can see that in lots of ways,” he said, in a Wednesday interview before the Federal Reserve decided to undertake its biggest interest-rate hike in nearly three decades.

“Housing is starting to roll over,” he said. “Inventories have exploded.”

“There are layoffs in multiple industries, and the Fed is stuck,” he said, with a position of having to “hike [interest rates] until inflation rolls over.”

Central-bank policy makers agreed to deliver an unusual 0.75-percentage-point rate increase, concluding a closely watched two-day policy meeting with a move that would push the Fed’s benchmark federal-funds rate rising to a range between 1.5% and 1.75% as it steps up the effort to quell an inflation rate that is hovering around a 40-year high.

https://www.marketwatch.com/story/the-e ... 1655328960

[caltrek]

^^^The only fair way to get out of this mess before it becomes worse would probably involve:

• Raising taxes on the superrich so as to balance the budget and reduce inflationary pressures caused by deficit spending.

• Another round of stimulus checks to help those most desperately affected by inflation. By stimulating aggregate demand, this would actually help sustain a full level of employment, which would also help generate the income needed to pay for the stimulus checks.

• Keeping interest rates high for the moment, or even raising them further if the other measures spelled out above are implemented

More long term, we need to break up the monopolies and oligopolies to ensure that competition works to keep prices in line.

Except for relying on the Fed, the other steps involve a willingness on the part of Congress to implement these measures. Republicans, and maverick Democrats like Manchin, will make sure that does not happen. They will then blame Biden for failing to keep inflation in check and likely gain in strength as a result of their recalcitrance. I am not sure when the U.S. public is going to ever collectively learn to stop rewarding bad behavior.

Edit: Since this is about global recession, I think these same sort of measures are going to need to be taken by other countries as well. The exact mix of such measures will depend upon local conditions. Reducing tariffs while shifting the tax burden to the super-rich can also help bring inflation down, again depending upon local conditions.

An overall reduction in military spending would also help, at least in regards to inflation. A resolution of the current conflict in the Ukraine would help in that regard, including within the economy of Russia and its allies. Of course, given the damage already sustained by their military, I don't see Russia under their current leadership doing much to reduce their military expenditures.

[wjfox]

[...] Raising taxes on the superrich so as to balance the budget and reduce inflationary pressures

[...] shifting the tax burden to the super-rich

Yeah, but making the hyper-rich pay even a scintilla more in tax is apparently "s0cIaLiSt" and "unamerican". True patriots believe in freedumb and smaller guv'mint. They don't want radical, extremist, Leftist policies, like taking an extra 1% from billionaires, as that would "destroy the economy" (apparently).

An overall reduction in military spending would also help, at least in regards to inflation.

Many countries have recently announced major increases in military spending.

[Time_Traveller]

Cineworld Group reportedly preparing for bankruptcy amid 'weaker than expected' audience numbers

15:18, 19 AUG 2022

Cineworld Group PLC is preparing to file for bankruptcy amid financial troubles, according to the Wall Street Journal.

The cinema chain, which has branches in Newcastle city centre, Boldon in South Tyneside and Dalton Park in County Durham, this week warned that audience numbers have been weaker than anticipated, and predict that figures will remain low until November amid 'limited' film releases.

The world's second largest cinema business - trailing 211 sites behind AMC - revealed earlier this week that it was 'assessing options to shore up its finances'.

Wales Online reports that Cineworld has allegedly engaged with Kirkland and Ellis lawyers, as well as consultants from Alix Partners to advise on bankruptcy proceedings. The WSJ say that the group is looking towards Chapter 11 bankruptcy in the USA, as well as complete insolvency in the United Kindgom.

The group, which also owns the popular Picturehouse chain in the UK, as well as Regal Cinemas in the United States, has pinned hopes on releases like Top Gun: Maverick, and The Batman and Thor: Love And Thunder to assist in its financial recovery following the global impact of the coronavirus pandemic. However, in a statement, the firm said: "Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.

https://www.chroniclelive.co.uk/news/uk ... s-24803405

[Time_Traveller]

Cineworld stops sale of UK and US operations amid debt restructuring

2 hrs ago

Troubled cinema chain Cineworld has said it will raise 2.26 billion US dollars (£1.8 billion) in new funding as part of a plan to exit bankruptcy and terminate a planned sale of its US, UK and Irish businesses.

The debt-ridden group, which runs around 750 sites globally, filed for bankruptcy protection in the US last year.

It has now said it will restructure its roughly five billion dollar debt pile in order to emerge from the Chapter 11 bankruptcy during the first half of 2023.

The financial restructuring will involve lenders providing around 1.46 billion dollars (£1.2 billion) in new credit, as well as 800 million dollars (£651 million) of equity to the lenders.

Earlier this year, Cineworld, which also owns the Picturehouse chain in the UK, launched a process to find a potential buyer.

https://www.greatbritishlife.co.uk/news ... ructuring/

[weatheriscool]

[weatheriscool]

The White House says stocks could plunge 45%

Congress now has a little over a week to raise the national borrowing limit before the US could potentially default on its obligations, which could include missing payments on some of its $31 trillion mountain of debt. Experts have warned that such an event would be a catastrophe for markets and the economy. Stocks could crash 45%, the White House Council of Economic Advisers estimated, rivaling the crash seen around the 2008 recession.

https://markets.businessinsider.com/new ... thy-2023-5

[Time_Traveller]

Empire Cinemas collapses into administration

59 minutes ago

Empire Cinemas has collapsed into administration with the immediate loss of 150 jobs.

Six cinemas in the chain have closed, with a further eight under threat.

Administrators BDO said the impact of the Covid pandemic and the cost of living crisis had "significantly affected the companies' business".

Last month rival chain Cineworld, also fell into administration, hit by the pandemic and competition from streaming.

The Empire cinemas that closed on Friday are in Bishop's Stortford, Catterick Garrison, Sunderland, Swindon, Walthamstow and Wigan.

https://www.bbc.co.uk/news/business-66134084

[Time_Traveller]

Wilko to call in administrators putting 12,000 jobs at risk

Thu, 3 August 2023 at 12:37 pm BST

High street retailer Wilko has filed a notice of intent to appoint administrators, putting around 12,000 jobs at risk.

The company’s chief executive confirmed the move on Thursday.

The retailer has around 400 stores across the UK.

Wilko chief executive officer Mark Jackson said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.

“Unfortunately, with this in mind, today we’re having to take the difficult decision to file a notice of intention.

https://uk.yahoo.com/news/wilko-call-ad ... 47247.html

[Time_Traveller]

Wilko: First job losses confirmed as deal to buy whole firm fails

18 minutes ago

Hundreds of staff at Wilko will lose their jobs at the collapsed chain over the coming days with more redundancies to follow, administrators have said.

The cuts come after a deal to buy the business fell through when the bidder failed to file paperwork in time.

Private equity firm M2 Capital said it made a £90m bid for Wilko but was unable to provide proof of funding.

PwC, which is overseeing Wilko's sale, said it was it was clear there was no viable offer to buy the whole business.

The discount chain, a stalwart of the High Street, fell into administration in August putting 12,500 jobs at risk across 400 shops.

https://www.bbc.com/news/business-66668569

[Time_Traveller]

New Body Shop owner call in administrators for UK chain

Saturday 10 February 2024 06:24, UK

The new owners of The Body Shop are lining up administrators for its British arm just weeks after taking control of the cosmetics retailer, in a move which could threaten significant numbers of shops and jobs.

Sky News has learnt that the company founded by Anita Roddick and her husband Gordon nearly half a century ago is preparing to appoint FRP Advisory to handle an insolvency process for its UK operation, which trades from around 200 stores.

City sources said on Friday that the administrators were ultimately likely to consider closing a significant chunk of The Body Shop's UK outlets, although they stressed that it was premature to speculate on specific numbers.

The Body Shop employs a large number of people in Britain, including at its head office in London.

The administration process for its UK operations will not impact the brand's global franchise partners, according to one insider.

https://news.sky.com/story/new-body-sho ... n-13067609

[Time_Traveller]

Yodel saved from collapse by fast-growing rival

2 hours ago

Parcel delivery firm Yodel has been saved from collapse in a last-minute rescue deal led by one of its rivals.

The business has been taken on by YDLGP, a newly-formed company backed by investment bank Solano Partners and the team behind logistics firm Shift.

Yodel makes about 190 million deliveries a year and it is thought the deal will safeguard thousands of jobs.

Its chief executive Mike Hancox said the move will "ensure continuity" for employees and customers too.

The firm was owned by the Barclay family and its clients include big brands such as Argos, Wren Kitchens, Gousto, second-hand clothes platform Vinted and the Very Group - also owned by the Barclay family.

https://www.bbc.co.uk/news/business-68282487

[Time_Traveller]

New Body Shop owner call in administrators for UK chain

Saturday 10 February 2024 06:24, UK

The new owners of The Body Shop are lining up administrators for its British arm just weeks after taking control of the cosmetics retailer, in a move which could threaten significant numbers of shops and jobs.

Sky News has learnt that the company founded by Anita Roddick and her husband Gordon nearly half a century ago is preparing to appoint FRP Advisory to handle an insolvency process for its UK operation, which trades from around 200 stores.

City sources said on Friday that the administrators were ultimately likely to consider closing a significant chunk of The Body Shop's UK outlets, although they stressed that it was premature to speculate on specific numbers.

The Body Shop employs a large number of people in Britain, including at its head office in London.

The administration process for its UK operations will not impact the brand's global franchise partners, according to one insider.

https://news.sky.com/story/new-body-sho ... n-13067609

More on this: -

Fears grow for Body Shop stores in the Republic as some parts of European operations start to close

FRI, 16 FEB, 2024 - 13:40

Fears are mounting over the survival of The Body Shop in the Republic of Ireland as other parts of the retailer’s operations across parts of Europe started to be shut down on Friday.

The skincare chain’s German stores have been put into administration and staff in Belgium have been told that their jobs are not safe, according to reports.

The German and Belgian stores employ a total of 460 people.

A question mark has hung over the Irish operations for some time. There are 50 staff employed across seven stores in the Republic, but the future of the store in the North is not known at this stage.

A source at the retailer told the Irish Examiner that staff in the Republic will be given a notice period of two weeks and that the retailer will be closing all its stores and operations.

https://www.irishexaminer.com/business/ ... 33347.html

[caltrek]

Why Macy's is Closing 150 Department Stores
by Alina Selyukh
February 27, 2024

Introduction:

(NPR) Macy's, an anchor of so many shopping malls, plans to close 150 department stores in a bid to reinvigorate sales and shift its public image more toward luxury goods.

The company on Tuesday said it will shutter "underproductive" stores, while opening more of its better-performing, higher-end siblings: Bloomingdale's and beauty-focused Bluemercury. Macy's also plans to add smaller stores at outdoor shopping centers, which have been growing in sharp contrast to indoor malls.

All this is part of a do-or-die task for the quintessential American department store under a brand-new CEO. His plan, dubbed "A Bold New Chapter," appears to acknowledge that Macy's for years has been losing its traditional middle-class shopper — both to the yawning wealth gap dividing America and simply to other retailers, including brands that sell directly online.

In January, Macy's separately told employees it would shutter five stores and cut 2,350 jobs, around 3.5% of its workforce. This followed several other waves of closing stores and offices in recent years. The scale of layoffs from the newly announced retail closures is unclear. Once they are done, Macy's will have 350 locations — just over half of what it had before the pandemic.

At the same time, the company expects to open 15 new Bloomingdale's and 30 or more Bluemercury stores, in addition to remodeling another 30 Bluemercury locations. Spring told analysts he wants to add a dozen small-format Macy's stores this year to locations outside the traditional mall this year, which would double their count, with plans for more next year.

Read more here: https://www.npr.org/2024/02/27/1234165 ... s-closing

[Time_Traveller]

Online car retailer Cazoo enters administration

21 May 2024, 16:25 BST



Online used car retailer Cazoo has fallen into administration, after cutting hundreds of jobs as part of a big restructuring.

Cazoo became popular during the Covid pandemic when restrictions forced car buyers to browse and make their purchases online.

But the loss-making company has been struggling to raise money from investors, and in March changed its model from being a dealer, where it bought and sold cars itself, to a marketplace where consumers can buy and sell cars.

That move has led to 728 redundancies, administrators Teneo said, after being appointed to try to find a buyer for the business.

Teneo said the firm's 208 remaining staff would be retained for the time being during the administration process.

https://www.bbc.co.uk/news/articles/cjq55333xg9o

[caltrek]

Walgreens Plans Store Closures as CEO Says Consumers 'Stunned' by Prices
by Rob Wile and Annika Kim Constantino,
June 27, 2024

Introduction:

(NBC) Walgreens is planning potentially sweeping store closures as it faces what its CEO called a “challenging” environment for pharmacies and U.S. consumers.

The pharmacy chain on Thursday morning announced quarterly earnings that fell short of Wall Street expectations. Walgreens' stock dropped more than 20% just minutes into the trading day.

In an interview with CNBC, CEO Tim Wentworth said the company now forecasts weaker consumer spending for the rest of the year.

″We assumed...in the second half that the consumer would get somewhat stronger” but “that is not the case," Wentworth said.

"The consumer is absolutely stunned by the absolute prices of things, and the fact that some of them may not be inflating doesn’t actually change their resistance to the current pricing," he added. "So we’ve had to get really keen, particularly in discretionary things."

Read more here: https://www.nbcnews.com/business/busin ... na159208

[weatheriscool]