Some of the world’s richest businessmen have lost almost £400m in just five months after stepping in to shore up ailing Metro Bank (MTRO). Billionaire hedge fund chief Steven Cohen was among those to bag what analysts dubbed “a bargain” during the bank’s cash call in May when it issued stock at 500p a share. But Metro’s shares plummeted again this week after the bank was forced to cancel a bond sale due to a lack of investor interest. The stock is now worth just 187p, a record low – meaning backers have suffered a further plunge in the value of their stock.
Thomas Cook Group (TCG) bosses could be stripped of their bonuses, Transport Secretary Grant Shapps has said – as it emerged executives secretly discussed putting the firm into administration two months ago as a last resort. Amid a growing backlash over the collapse of the business Mr Shapps said that investigators probing what happened could seek to recover money paid to directors.
Sainsbury (J) (SBRY) chief executive Mike Coupe has pledged to shut dozens of stores and slash £500m of costs as he battles to keep his job after a failed merger with Asda. The supermarket is poised to close up to 125 outlets over the next five years, including large shops, convenience stores and standalone sites run by Argos, which it also owns. It declined to say which stores could be affected or the number of jobs at risk, but industry observers warned that hundreds of roles are likely to be scrapped. The retailer also said it will immediately halt new mortgage sales and stop injecting capital into its banking arm after ploughing a further £35m into the division this year.
Prudential (PRU) investors are set to enjoy a billion-pound windfall after Britain’s largest insurer shells out £350m to split from its UK and European savings and insurance business and fund management arm in late October. Shareholders have now been given an exact timeline for the £7bn demerger, as well as details around future payouts, despite the transaction being in the works since early 2018. New shares in M&G will be admitted to the London Stock Exchange on October 21, following a general meeting on October 15, with both Prudential and the new entity expected to pay out more than £1.3bn between them over the course of 2019 and 2020.
Tesco (TSCO) is axing the first Jack’s a year after the supermarket giant unveiled the discount chain that is meant to help it take on the likes of Aldi and Lidl. The Rawtenstall store was opened earlier this year to see if a so-called “bulk buy store” would attract shoppers. A Tesco spokesperson said: “All colleagues currently employed by Jack’s will transfer over to Tesco with new additional roles also available.” The grocer, which has 10 Jack’s stores at present, said it was opening a new Tesco store in Rawtenstall “that will better serve customers in this area”. It will open three more Jack’s by the end of the year.
A deal with Love Island winner Amber Gill helped drive annual sales at online fashion firm Boohoo.com (BOO) above £1bn for the first time. The online operator, which has overtaken arch rival Asos as the largest fashion retailer on London’s AIM, posted a 43% rise in revenues to £564m for the six months to the end of August. Profits jumped £20m to £45.2m. Boohoo’s success has been partly driven by its work with social media darlings such as Ms Gill, 23, who was paid £1m to promote its MissPap brand. The firm now spends around £50m a year on contracts with stars including England footballer Dele Alli, actress Emily Ratajkowski and US rapper Em Saweetie.
