German cataloguer Neckermann said it will file
for insolvency after its private-equity owner refused to provide
further financing to fund its turnaround plans. In April,
Neckermann announced plans to shed some 1,380 jobs in a
restructure to focus on eCommerce sales. However, last week
Neckermann said it did not have the funds to pay staff the
compensation they were seeking for the redundancies. According to
reports, Sun Capital said it had been willing to provide
€25 million in financing, but that the plan presented by
the management would have needed €60 million and it decided
to withdraw investment.
At another German retailer Karstadt, some 2,000
jobs are on the line as the company announces its restructuring.
The cuts are to be made primarily through early retirements,
letting temporary contracts end and voluntary exits, but still
see the company shed almost 10 per cent of its workforce by 2014.
Karstadt says challenging market conditions and the euro crisis
have forced it to simplify its structures and processes, in order
for it to be efficient in the long term.
Karstadt was rescued from bankruptcy in 2010.
David Wild, Halfords’ chief executive officer,
is leaving the business after the board deemed a change of
leadership was needed to enable to “maximise the
opportunities that lie ahead”. The news comes as the auto
accessories retailer posted a weak first quarter, like-for-like
retail sales were down 7.5 per cent during the 13 weeks to 29th
June. A search for a new chief exec has begun.
Group revenue at sporting goods retailer Sports
Direct was up 13 per cent to £1.81 billion in the 52
weeks to 29th April. Online sales were particularly strong in the
period, up 82 per cent, and now represent 11.6 per cent of total
sports retail sales. Pretax earnings (EBITDA) including the
recently acquired “premium lifestyle” division
comprising USC, Cruise and
Flannels was £236 million-up 12 per cent on
last year. To further accommodate its growing online division,
Sports Direct is constructing an additional 1 million square-feet
of warehousing at its Shirebrook headquarters.
Kingfisher, the parent company of
B&Q and Screwfix saw total
sales in UK & Ireland rise 5 per cent in the 10 weeks to 7th July.
B&Q total sales were up 4.9 per cent, while Screwfix grew by 7.2
per cent, driven by new ranges and the continued roll-out of new
outlets.
At nursery and maternity products retailer
Mothercare, total group sales declined 4.4
per cent in the first quarter, with direct sales down 7.1 per cent.
Mothercare hopes that a recent upgrade to a new web platform will
lead to an increase in online sales.
Ethel Austin, the discount fashion retailer, has
collapsed into administration for the fourth time, putting 500
jobs in jeopardy writes the Independent.
Whittard of Chelsea, the tea, coffee and hot
chocolate retailer, has signed a two-year agreement with the
Royal Albert Hall. The partnership sees Whittard
of Chelsea create a selection of exclusive blends for the Royal
Albert Hall, which will be available to purchase in Whittard
stores and online as well as at the venue’s bar, cafe and retail
outlet.
Another partnership, this time between Laura
Ashley and Uniqlo, has helped the
former’s profits rocket to £18.8 million, notes the Guardian.
Share