Steinhoff has begun talks with lenders seeking to acquire €200 million in “interim liquidity support” in an attempt to keep itself from collapsing entirely. The South African retail giant, which has been the centre of an accounting scandal in recent months, is reportedly in talks with banks looking to secure funds to support its European operations alongside a temporary waver of its debt agreements. Despite South African banks already pledging €60 million, which will be paid out by the end of the week, Steinhoff cautioned investors that “there can be no assurance that the company will be able to reach agreement with its finance providers on acceptable terms or at all”
Inflation throughout December eased slightly, offering hope that analysts’ predictions that inflation has peaked are correct. Following a six-year high of 3.1 per cent in November, the Office for National Statistics (ONS) has revealed that inflation dropped to three per cent last month. This will come as good news to consumers, who have seen stagnant wage growth alongside soaring inflation, leading to a sharp decline in spending power.
Online electricals retailer AO World has said it was on track to meet full year forecasts following continued revenue growth over the Christmas period. In its third quarterly update ending December 31, the retailer said total revenue grew 16.6 per cent year-on-year and while it expects its full year performance to be within analysts’ expectations, it remains cautious given the “uncertain UK economic outlook”. AO World’s UK business experienced revenue growth of 11.4 per cent and Ao.com revenue was up by 11.2 per cent year-on-year.
Steinhoff’s situation worsened this week as ratings agency Moody’s further downgraded the retail giant as its UK companies are likely to be sold off.
“The bigger they are, the harder they fall.” Whenever the name Enron or Northern Rock is mentioned, it’s tough not to look back and think in hindsight how obvious the signs were. But of course, only a brave and insightful few spoke up before their spectacular downfalls shook their respective nations, and indeed the globe
Flooring retailer Carpetright has seen its pre-tax profits dive as it warned shareholders of “challenging” trading conditions. In the first half of the year, Carpetright’s bottom line pre-tax profits dropped 92.7 per cent to £300,000, while overall profits after tax were down 58.8 per cent to £2.1 million. Revenues edged up 2.6 per cent, despite dropping slightly in the UK to £185 million, having been propped up by a 20 per cent rise in European sales to £43 million.
AO World’s losses has widened by almost £10 million, as the electricals retailer increased UK brand expenditure and investment in Europe. For the six month period to the end of September, AO World’s total operating losses stood at £12 million, compared to the £2.8 million recorded during the same time last year.
It marks Snap’s first fixed European Spectacles retailer, Verge reports.
Sound technology brand Sonos is set to open its first European concept store in the heart of London on November 16.
Nobody likes waiting. Whether it’s for a bus or for a site to load, people want things to be there exactly when they need them.