A court is due to rule on whether Sainsbury (J) (SBRY) broke the law when it pulled out of building a new £7m supermarket. The grocer was taken to court over claims it breached a contract when abandoning the project for the store in Whittlesey, Cambridgeshire. The retailer decided the scheme was no longer financially viable in 2015 as competition in the grocery arena heated up. The case was heard in the Chancery Division of the High Court in London last week and Judge Simon Monty QC said a verdict is expected in the next few weeks. Bruce Smith is suing the grocer over claims it failed to keep to the terms of a deal with his Whitacre Management development company.
The boss of Wizz Air Holdings (WIZZ) has cast doubt on rival easyJet’s bid to fill the void left by Thomas Cook with a sweeping expansion into package holidays. Wizz chief József Váradi said he was “surprised” at his competitor’s plans, with easyJet (EZJ) poised to reveal details next week after putting its proposals on ice for a year. Thomas Cook’s collapse has triggered a scramble for market share by other players in the industry – but Mr Váradi is sceptical about its future. He said: “I don’t think this packaged holiday industry is going to flourish. I think that the model is outdated. Why should they [customers] pay a premium for pretty much nothing?” Ryanair Holdings (RYA) boss Michael O’Leary sparked anger in October by saying the packaged holiday sector was “screwed” in the wake of Thomas Cook’s collapse.
Former footballers, including pundit Andy Townsend, are suing wealth manager St James’s Place (STJ) over claims it encouraged clients to invest in tax-dodging schemes. The sportsmen, who include ex-Chelsea midfielder Mr Townsend as well as England international Colin Cooper, West Brom goalkeeper Glyn “Boaz” Myhill and Portsmouth defender Linvoy Primus, claim they were wrongly urged to invest in British film projects as part of a tax avoidance plot later ruled unlawful. In a London court, lawyers claimed that half of their 14 clients were advised to invest in the schemes between 2005 and 2006 without being made aware of the relevant risks. The remaining seven are suing over pension-related investments made in small businesses. Both groups are represented by law firm Clyde & Co.
Avon Rubber (AVON) is seeking fresh acquisition targets. The main-market-listed company is currently waiting security approval for its $91m August purchase of US-based body armour business Ceradyne from 3M. However, Avon chief executive Paul McDonald said he is seeking further deals as the company builds up a £200m war chest in an attempt to increase its exposure to the security sector. “We already had masks and respirators, and Ceradyne means with helmets and body armour we protect soldiers from the waist up,” he said. “We’re looking at how technology can integrate that, such as displays on visors so soldiers are better informed about their surroundings.”
has named industry veteran Mike Henry as its new chief executive, replacing Andrew Mackenzie who is retiring at the end of the year. The Anglo-Australian miner said Mr Henry, currently head of its iron ore, coal and copper mines in Australia, will take the helm on January 1. The Canadian-born 53-year old has worked at the firm for 16 years and in the mining industry for three decades. He will earn a base salary of $1.7m a year, consistent with that of Mackenzie’s. Ken MacKenzie, chairman, said Mr Henry’s operational and commercial experience, which spans the Americas, Europe, Asia and Australia, was “the perfect mix for our next chief executive”.
Unilever (ULVR) chairman is stepping down immediately in a surprise decision by the Anglo-Dutch consumer goods giant. Marijn Dekkers will leave after just three and a half years in the role, and is being replaced by former Carlsberg and Maersk chief executive Nils Andersen. Mr Dekkers’ departure comes a year after he scrapped plans to move Unilever’s headquarters from London to Rotterdam in the Netherlands in the wake of a huge shareholder rebellion. He said the decision to step down was a difficult one. He will remain on the board as a non-executive director and said Unilever will go from “strength to strength” under the new leadership.
British Land Company (BLND) has become the latest to suffer from the crisis gripping the high street after 10.7% was wiped off the value of its retail estate. The owner of the Meadowhall estate in Sheffield and Drake Circus in Plymouth has seen the value of its retail estate slashed to £4.8bn and its overall estate by 4.3% from £12.3bn to £11.7bn. The business is planning to trim retail to 30-35% of its portfolio within about five years, compared to about 40% now, because its expects online sales to rise.
