Debenhams finally falls into administration after rejecting Mike Ashley rescue bid. Debenhams (DEB) has finally fallen into administration after a long battle with Sports Direct’s Mike Ashley, who had been scrambling to avoid his stake being wiped out. The move is expected to trigger store closures and job losses as part of a wider restructuring that will see around 50 outlets shut via a Company Voluntary Arrangement The 206-year-old department store is now controlled by a group of lenders, led by hedge funds Silver Point Capital and GoldenTree, following a swift pre-pack deal. The administration comes just hours after made a last-ditch effort to derail the process with an offer to underwrite a £200m rights issue, on the condition that he was made chief executive.
Pub chain pays weekly bonuses in bid to keep bar staff. Bar staff at a chain of upmarket pubs will be paid weekly sales bonuses worth as much as £3,000 a year in a bid to recruit and retain workers. The City Pub Group (CPC), which runs 50 watering holes in the south of England including the Jam Tree in Chelsea and the Brighton Beach Club, believes the “radical” bonus plans will help achieve its lofty growth ambitions. If a pub hits weekly sales targets, employees will be paid an additional £1 an hour, rising to £1.50 if the target is beaten by a tenth. “It has engaged our staff in the sales of the business,” said chairman Clive Watson. “[And] it is helping with recruitment and retainment.”
US may slap tariffs on European cheese and wine in Boeing-Airbus trade spat. Donald Trump has weighed in on the long-running row between Airbus and Boeing over subsidies, proposing tariffs worth $11.2bn (£8.6bn) on a range of European imports in retaliation for the harm the US claims it has suffered from EU support for the plane manufacturer. A list of goods targeted for the levies from the US Office of Trade Representation (USTR) singles out aircraft and aerospace parts made in the UK, France, Germany and Spain – the key national partners in Airbus. Also in President Trump’s sights on the 14-page list are a swathe of goods ranging from cheese to wine, motorbikes to diggers.
Jury discharged in landmark Barclays (BARC) fraud trial. The jury has been discharged in a landmark fraud trial of four former Barclays bosses, the first trial of a major banking boss for actions taking during the financial crisis. The high-profile case, connected to two emergency fundraisings in 2008 when the UK’s banking system was on the brink of collapse, is subject to continuing reporting restrictions. The Serious Fraud Office (SFO) first announced charges against the four bankers in 2017 following a five-year investigation and the trial began in January.
Debenhams set for administration after rejecting Mike Ashley’s £150m rescue offer. Debenhams (DEB) has rejected Mike Ashley’s £150m last-ditch offer to rescue the troubled department store, putting it on course for administration in the next 24 hours. The Sports Direct owner had offered to underwrite a £150m rights issue if he was made chief executive. That would have saved the retailer from a pre-pack administration deal and prevented his 30% stake in Debenhams being wiped out along with the equity of other shareholders. After his bid was turned down, Mr Ashley called on the Debenhams board and its lenders to “actively engage in negotiations” and said he was still considering making a £61m cash offer for the retailer, claiming he had until April 22 to do so.
Aston Martin Holdings (AML) shares skidded to a record low after Deutsche Bank halved its target price for the James Bond carmaker on fears of it succumbing to the global car industry slump. The company’s valuation has now halved in a nightmare first six months of trading on London’s stock market as City scribblers at Deutsche dealt the latest blow. After strong sales in 2018 were offset by its costly float, analyst Tim Rokossa warned that the car market’s woes and Brexit angst will hold back customer demand this year. The industry is grappling with the threat of US tariffs, new emissions standards in Europe, heightened geopolitical uncertainty and slowing global growth.
Activist investor Ed Bramson likens Barclays (BARC) to Deutsche Bank in battle for backing. Activist investor Ed Bramson has attacked the board of Barclays and sounded a warning about its future in a final attempt to have his arguments heard before a crunch meeting next month. The secretive investor, who owns more than 5% of the lender through his fund Sherborne Investors, told Barclays shareholders that the problems facing Germany’s Deutsche Bank were a “cautionary sign” for the UK bank as both have “similar strategic weaknesses”. Mr Bramson also warned that if Barclays failed to change, there was a “real threat that more new capital will need to be raised” to prop up its under-pressure investment bank, which he wants to shrink.
Questor: there’s much to like at Dunelm Group (DNLM) but a high valuation leaves little room for error. Questor share tip: while the board is doing a good job, paying a fat multiple for a business in such an unpredictable sector is rarely a good idea
