Flying Brands has warned that it may breach its
banking covenants after trading in the autumn season came in
“below management expectations”, with its Gardening
Direct business underperforming “significantly”.
Flying Brands will now look at renegotiating its banking
arrangements or seek a waiver from the bank. It is also in
advanced negotiations regarding the sale of
“non-core” property assets.
Like-for-like sales at department-store chain House of
Fraser grew 5.3 percent in the first half of the year.
EBITDA was down from £13 million to £12.2 million,
allowing for set-up costs relating to a new distribution centre.
The company’s online business delivered “triple-digit
growth” during the period and is now House of Fraser’s best
performing store.
The latest in the Interflora/Marks & Spencer
trademark bidding war: the Court of Justice of the European Union
has ruled that a brand owner is entitled to prevent bidding on
its registered trademark if it is “liable to have an
adverse effect on one of the ‘functions’ of the mark”-in
other words, explained Interflora in a statement, “where
that use substantially interferes with the brand’s reputation and
its ability to attract and retain consumers”. This is by no
means a final decision though, the judgment of the Court of
Justice needs to be applied by the High Court in the UK to
determine the question of Marks & Spencer’s liability. This is
due in the course of 2012.
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