Posts from June 2023

High street retailer, Next plc, could part company with upscale fashion brand, Reiss, in which it owns a controlling stake. The high street giant is reportedly in talks to sell its stake in Reiss in a £500m deal according to Sky News. Next and another shareholder, Warburg Pincus, are in second round talks about the sale, Sky said. It reported that the process is being overseen by investment bankers from the private equity company, Raymond James. Next took a 25% stake in Reiss in 2021 in a deal worth £433m. The deal also allowed the high street retailer to to take an additional 26% interest at pre agreed terms taking its holdings in Reiss to 51%. In May 2016, US private equity firm Warburg Pincus acquired a majority stake in Reiss, with the Reiss family retaining a minority holding. Under the terms of the deal, Reiss retained its management autonomy and creative independence, with its own independent board of directors. London-based Reiss was founded by David Reiss in 1971, originally as a menswear brand. It now has 160 outlets across the world.

News

Edinburgh Woollen Mill Group owes creditor £167m

The collapse of Philip Day’s Edinburgh Woollen Mill Group empire has left creditors £167m out of pocket, it has been reported. According to The Times, administrators’ reports show the group still owes £167m to unsecured creditors, including landlords. The retail group, which was badly dented during the pandemic, went into administration in November 2020, with reported debts of £192m. But the Carlisle-based retailer behind brands such as Jane Norman and Peacocks resumed trading after a rescue package was arranged in January 2021. The company, originally a wool yarn dyeing business, the Langholm Dyeing and Finishing Company, was founded in 1946 by Drew Stevenson. Its first retail store opened in Edinburgh in 1970, with its first English branch following in Carlisle two years later.

News

Sustainable ammendments made to Cambridge Council’s Botanic Place

Amendments designed to limit the environmental effect of the Botanic Place workspace in Cambridge have been submitted to Cambridge County Council, the property developers, Railpen and Socius said. Botanic Place, located next to Cambridge University Botanic Garden on Hills Road, has existing planning consent for an architect-designed £500m, 500,000 sq. ft workspace scheme. The mixed use scheme will also create over 200 local jobs through the development of cafes, restaurants and a market hall. The developers said the design changes, which were submitted by a Section 73 planning application on 26 May, would reduce the carbon impact of construction, improve energy efficiency, prioritise cyclists over cars, and improve shared outdoor green space. Doug Higgins, development director, Socius said: “Through our conversations with the council and community over the past few years, it is clear that sustainability, green space and limiting vehicle congestion are of high importance in Cambridge.” The amendments include reducing the depth of the basement and shortening construction time of the building work by 21 months and increasing the amount of publicly accessible green space to over 2000 sqm. The plans would also cut available parking spaces while boosting bicycle parking spaces to over 1,500.

News

Sainsbury’s and Asda “unlawfully” blocked rivals from store openings

Sainsbury’s and Asda have been ordered to stop using “unlawful anti-competitive land agreements” to prevent rivals from opening stores nearby. The stores also used legal agreements to block landlords from allowing competing stores on land in the same block as existing shops. According to the Competition and Markets Authority (CMA), the restrictions have reduced consumers choices and access to lower priced goods. The supermarket giants have agreed to address some 32 anti-competitive land agreements, however they claimed they had been “technical” and not harmed consumers. The CMA found that Sainsbury’s had breached anti-competition rules 18 times between 2011 and 2019, while Asda totalled 14 breaches over the same period. Sainsbury’s has now agreed to remove its restrictions. Asda’s land agreements have already been removed. The CMS previously accused Tesco and Waitrose of similar offenses. David Stewart, executive director of markets and mergers at the CMA, said: “Restrictions of this nature are against the law, cause real harm to shoppers and will not be tolerated. This is particularly important at a time when many families are struggling to pay their weekly grocery bills. With families under increasing pressure, it is even more critical that competition between supermarkets is helping people to...

News

Andy Higginson appointed as BRC Chairman

Andy Higginson has been appointed as BRC Chairman. He succeeds Tony De Nunzio, whose tenure ends in September. Higginson has over 30 years’ experience in the retail industry in the UK and internationally. He was previously CFO at the Burton Group and Tesco, Chairman of Poundland, N Brown and Morrisons, and is currently Chair of JD Sports. He will work under CEO, Helen Dickinson, guiding the organisations development as it supports the retail industry through market changes. Speaking on the decision Higginson said: “In the past three years we have seen the best of retail as it navigated the unprecedented challenges of Covid-19, and the inflationary environment we see today. With innovation, agility and resilience, retailers have continued to deliver for customers. Yet the pressure is still on as retailers need to invest in transforming their businesses for the future. More than ever, a strong collective voice is needed to advocate for the industry and to help retail businesses navigate change.“

News

F1 Arcade secures £30 million investment

F1 Arcade owners Kindred Concepts has secured a £30m investment to fuel the next phase of the concept’s expansion. The expansion will predominantly take place in the US, where 30 new locations are being planned. However new openings will also be popping up in the UK, Australia, and the Middle East by the end of 2027. The first F1 Arcade site opened in the UK at London’s St Paul’s in last November. The second UK site is due to open at Two Chamberlain Square at Paradise Birmingham later this year. Liberty Media led the latest fundraising round and attracted investment firm Imbiba, as well as McLaren Racing chief executive Zak Brown and Formula 1 drivers Lando Norris and Logan Sargeant. Adam Breeden, chief executive, and founder of Kindred Concepts, said: “We are excited to be working closely with Liberty Media and Formula 1 as equity partners as we drive towards global growth. Not only do we have an exceptional business model and product, but we are excited about the power of the F1 Arcade brand, its appeal to international audiences as well as potential partners around the world.”

Deals News

Burritos and bubble tea for Guildford’s White Lion Walk

Fast food and drink giants Chipotle and Mooboo are to open restaurants in Guildford’s White Lion Walk Shopping Centre. Chipotle, the American fast casual restaurant serving Mexican cuisine and Mooboo, the largest bubble tea operator in the UK, have both signed leases with landlord Redevco, on new 1,700 sq ft and 350 sq ft units respectively. Redevco, which has injected £8m into the retail and leisure development, said that both companies aim to open the branches this summer and are currently fitting out their premises. Claire Yeadon, asset manager, at Redevco said: “It’s exciting to see how quickly our multi-million pound investment is sparking fresh interest from businesses and retailers looking to uniquely position themselves in the heart of one of Surrey’s most dynamic and accessible destinations.” She added: “We have a strong record of repositioning spaces with sub-optimal use into properties with a mix of functions. White Lion Walk demonstrates how this approach can transform properties into truly relevant and inspiring destinations that will ultimately create more vibrant and sustainable town centres.” Built in the 1980s, the Centre links Guildford High St to North St and comprises a ground floor promenade of retail and hospitality units beneath a covered walkway. ...

Deals News

Kim’s ‘Skims Swim’ dives into Selfridges for European debut

Kim Kardashian’s shapewear and clothing brand, Skims, made a splash opening its first UK pop-up in Selfridges in London. The corner space on the department store’s ground floor was transformed into a poolside oasis with diving boards and palm tree decorations, all designed by Willo Perron. The reality TV star turned fashion mogul, said: “Our customers in Europe have been asking for a Skims pop-up experience since we launched our first pop-up two years ago, so I’m thrilled to bring Skims Swim to London for the first time ever and take over The Corner Shop at Selfridges with our most conceptual pop-up experience to date.” The pop up will run in Selfridges until July 8. Customers will be offered ice cream treats while they browse the corner space, which will stock a range of loungewear, underwear and shapewear. It marks the start of the brand’s expansion in Europe, with plans to open a permanent concession in Selfridges later this Summer. It is also planning on opening a range of shops across the UK and Europe over the next three years. Bosse Myhr, Selfridges director of womenswear and menswear, said: “We are looking forward to Selfridges customers being the first to...

News

Wilko appoints advisors ahead of rent cuts

Wilko has appointed property agent CBRE as it prepares to negotiate with landlords about decreasing rents across its stores. According to Sky News, the retailer is looking to reduce rents in order to avoid closing a significant number of its stores as part of a company voluntary arrangement (CVA). In 2022 the privately-owned company closed 15 of its shops as it was beset by financial pressures. At the beginning of the year Wilko announced a turnaround programme and secured a £40m loan from restructuring specialists, Hilco, which owns Homebase. Mark Jackson, Wilko’s chief executive, said: “We announced the start of our turnaround programme to drive Wilko forward in January, complete with a new streamlined senior team and a strategic plan to first stabilise the business and then implement a growth strategy.” He added: “We’re in the early stage of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future. We’re confident with the right actions, we’ll continue to be a key feature on the British high street and expand our omnichannel offer.” Wilko warned it could run out of money after posting a loss of £36.8m in November 2022 as lockdowns, supply chain...

News

Japanese ‘staircase BBQ’ concept High Yaki opens in Chinatown

Shaftesbury Capital has annouced the opening of High Yaki, a new Japanese “staircase barbecue” concept restaurant, in London’s Chinatown. The 3,600 sq ft restaurant located at 10 Newport Place, is set over two floors with a mezzanine level for private dining. Andrew Price, executive director at Shaftesbury Capital, said Chinatown was a sought-after location for independent East and South East Asian (ESEA) brands, championing new concepts from across the region. “High Yaki delivers on this with its unique take on Japanese barbeque, and is a great addition to the bustling Newport Place, joining Chinatown London’s unmatched collection of authentic regional Chinese and pan-Asian restaurants.” The restaurant has a curved bar wall displaying traditional Japanese liquors, lighting fixtures, black marble finishes, and built-in tabletop grilling systems. It specialises in yakitori, yakiniku, and dry-aged wagyu, and displays its ready-to-grill items in its “staircase barbecue” style. Leo Lu, director, High Yaki, said “As one of the world’s most dynamic and engaging dining scenes, Chinatown London is a must have location within an East Asian concept’s portfolio. Debuting High Yaki in such a prominent unit within the iconic Chinatown London is a moment we will never forget.” The opening follows the signing of Pan-Asian restaurant...

News

Travelodge on the market for £1.2bn

Travelodge owner GoldenTree, is seeking to cash in on a post-pandemic boom in holiday demand by selling the Travelodge hotels. The budget chain, which is headed up by chief executive officer, Jo Boydell, is being put on the market for £1.2bn after nearly a decade under GoldenTree’s ownership. The hedge fund is reported to be in talks with a range of investment banks over selling the hotel business. Travelodge has benefitted from the strong recovery in hospitality and increasing trend towards “staycations” since the ending of Covid restrictions that had badly hit the hospitality sector. The hotel chain, which has over 12,000 employees, 595 hotels and 45,781 rooms, posted record financial results in May. It said that revenues were up 25% on the previous year, with profits of £212.9m. These were driven by strong levels of domestic leisure demand and a rapid recovery in ‘blue collar’ business demand, offsetting the more gradual recovery in ‘white collar’ corporate demand, it said. Travelodge opened six new hotels in 2022, including one in Dublin and plans to open a further eight new hotels in 2023.

News

Greggs rolls out in Cornwall

Greggs has opened a fourth branch in Cornwall, a move that is set to pit the company against the county’s traditional local pasty makers. The company, which is known for its steak bakes and other warm pastries, will open the new branch in U2 Enterprise Park in Saltash on Saturday. Greggs chief executive, Roisin Currie, who became chief executive in May 2022, told Sky News that the new branch was part of its expansion plans. “The opening strategy is going to plan and the new location in Cornwall is a key part of that,” Currie said. She added: “Obviously we are a brand that started from the north and the natural growth of the business from there means there are some parts of the country, such as in Cornwall and the south west, where we see more scope to open sites.” The Newcastle-based bakery chain, which was founded in 1939, currently has around 2,300 shops across the country but has plans to increase the number of its outlets to 3000. This year it also plans to trial drive-thru shops and have 300 more of its branches open after 9pm.

News

Frasers Group takes £75m stake in AO World

Frasers Group has taken a £75m stake in online electrical retailer, AO World, sending shares in both companies soaring on Monday morning. Mike Ashley’s retail empire, which owns brands including Sports Direct and House of Fraser, bought the 18.9% slice of equity in AO from Odey Asset Management. It bought 109.4 million AO shares at 68p following talks between the two companies over two years. Michael Murray, chief executive officer of Frasers Group, said the company had long admired what AO had built. “AO is a fantastic business with a clear strategy which is leading the market in online-only electricals. Through this investment, Frasers will benefit from AO’s valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges.” Bolton-based AO World, which was founded in 2000 by John Roberts, specialises in household appliances and electrical goods. John Roberts, founder and chief executive officer of AO, hailed the deal as a “fantastic endorsement for our business”. “We are delighted to welcome Michael and the wider Frasers team into the AO family and look forward to realising the significant potential that we see for this partnership,” Roberts said. He added: “As we continue to...

Deals News

Lord Cadogan Dies aged 86

Lord Cadogan, the billionaire businessman, peer and head of the landed estate which owns the Chelsea Estate has died, aged 86. Charles Gerald John Cadogan, the 8th Earl Cadogan, served in the army prior to working at Schroders. He joined the family business in 1974, after which he started to reorganise the 93 acre landed Estate, which includes the King’s Road and Sloane Square. In a statement, the Cadogan Estate said: “He led a full life. He found enjoyment and amusement readily and was wonderful company, gregarious and voluble. He described himself as a ‘countryman’ and whilst his family business has been very successful under his stewardship, he felt most comfortable in the role of philanthropist.” After attending Eton, Lord Cadogan became a second lieutenant in the First Battalion of the Coldstream Guards. He then spent 16 years working in the City at Schroders. The experience he acquired at Schroders gave him a grounding on which he would draw on when leading the Estate. After his father the 7th Earl Cadogan left the Cadogan Estate in 1979, he oversaw a shift in focus of the Estate. The statement said: “He changed the business from being a traditional collector of ground...

News

Property investors look to pay down debt as interest rates rise

More than nine in ten large landlords are seeking to pay off debts as rising interest rates erode their profits, according to new independent research conducted on behalf of property business expert, Handelsbanken. Handelsbanken’s Professional Landlords Survey found that 91% of respondents are looking to pay down the debt on their portfolios to ensure they have optimum yield and risk/return profiles. James Sproule, UK chief economist at Handelsbanken, said as rates continued to rise its residential property prices were unlikely to stabilise in the short term. “In contrast to owner-occupiers, professional landlords will often have a more detached and less emotional view of property values and are more likely to act in a way that recognises market realities.” Sproule said, adding: “That’s why we are seeing landlords sensibly paying down debt, while others are increasingly alert to opportunities in sectors such as offices.” But in a sign of resilient sentiment among professional property investors, the survey also found that 59% of respondents intend to increase the size of their portfolio over the next 12 months. Simon Bradley, chief credit officer, at Handelsbanken said: “While our Professional Landlords Survey shows how they are positively managing the current challenges within their sector, it...

Insights

Badiani expansion marks debut in Balham

Upscale Italian ice cream parlour, Badiani, has announced Balham as the next location of its UK expansion. Badiani Balham will open on Hildreth Street on 6 July, marking the brand’s 11th shop opening. The new parlour will be the first in Badiani’s portfolio to sell fresh, made-to-order pasta, alongside its award-winning gelato, desserts and pastries. Massimo Franchi, chief executive officer of Badiani, said: “This opening is a significant step in our expansion journey.” Shelley Sandzer advised the 91 year old gelateria. Richard Thomas, director of agency, said: “Badiani has established itself as a London favourite when it comes to artisanal gelato, and there is no doubt it will thrive in the heart of Balham’s lively F&B hub.”

News

Lush launches latest London pop-up inspired by Wes Anderson

Lush launches London pop-up