Debenhams investors wiped out in pre-pack administration. Lenders have taken control of Debenhams (DEB) on Tuesday after the ailing department rejected a rescue offer from to inject £200 million into the ailing business. Administrators at FTI Consulting were drafted in to handle the pre-pack administration, giving debt-laden Debenhams access to a pre-agreed £200 million of fresh funding from its lenders. Debenhams shareholders’ have been wiped out in the process, including Mike Ashley’s Sports Direct, its largest shareholder with a 29.9% stake. Ashley has spent around £150 million building his holding in the retailer since 2014.
Competition watchdog accuses building firms of running price cartel. A trio of building firms were on Tuesday accused of running a price cartel by the UK competition watchdog, potentially triggering millions of pounds in fines. The Competition and Markets Authority’s provisional findings revealed listed hire company VP (VP.) and MGF running a cartel on groundworks products used in excavations for periods totalling two years. The findings also revealed sharing confidential information on pricing to cut competition and keep prices up. A third player, Mabey Hire, was also in the cartel for five months, but blew the whistle on the other two and will not be fined if it continues to cooperate with the CMA.
The best of British came under pressure from the across the pond on Tuesday as the US looked to slap $11 billion (£8.4 billion) worth of tariffs on EU goods. President Donald Trump’s administration signalled a fresh trade offensive to punish Europe for paying subsidies to French plane maker Airbus, hitting aerospace supplier Rolls-Royce Holdings (RR.) and luxury fashion brand Burberry Group (BRBY). Hundreds of products, ranging from aircraft to pullovers and, horror of horrors, Marsala wine, may face additional duties, according to the US trade office. Similar companies like French aerospace giants Airbus, Safran, and Italian helicopters maker Leonardo weakened over the Channel. Skiwear is also in the line of fire. Italian luxury brand Moncler, which sells £600 bodywarmers, slalomed in Milan.
JPMorgan analysts downgraded Severn Trent (SVT) the Midlands water supplier to Neutral from Overweight ahead of a stormier period for utilities companies. South West Water owner Pennon Group (PNN) got the same treatment. The bank’s European utilities analyst team say Ofcom’s capital rules due in June could hit dividend policies and they also believe the likelihood of nationalisation by Labour is edging higher due to a possible general election to break the Brexit impasse.
Yorkshire miner Sirius Minerals (SXX), gaining 14% to 25.25p, but a spokesman said there was no specific factor for the leap other than market sentiment. Some speculated it may be due to rising fertiliser pricing or a sell-down by shareholder Capital.
Hipgnosis Songs Fund (SONG), the fund set up by former Iron Maiden manager Merck Mercuriadis to cash in on music royalties, moved lower after snapping up copyright interest in six hits by floppy-haired Canadian singer Shawn Mendes. The company has bought the rights from Teddy Geiger, who co-wrote the songs.
City Pub Group boosts bonuses fourfold to entice millennials to work in bars. The City Pub Group (CPC) on Tuesday said it is quadrupling staff bonuses to entice millennials to work behind the bar. The pubs operator typically paid out £750 annually to each non-management employee as part of a profit-share system. That will be increased to as much as £3000 spread out in weekly payments, and is linked to meeting sales targets. Chairman Clive Watson said there has been industry-wide recruitment struggles: “Some of that has been Brexit-related, and some is millennials not wanting to work unsociable hours.” He hopes the move will help attract and retain staff.
