Today’s news in brief-3/6/24
Shein is reportedly preparing for a landmark London flotation valued at £50bn, marking the city’s most significant public float in over a decade. Sources indicate that the fast-fashion giant will soon file a prospectus with the Financial Conduct Authority, although the exact timing remains uncertain. This move comes after Shein faced regulatory challenges in its initial attempt to float in New York. The company has been engaging with London-based fund managers as part of its preparations and plans to update China’s securities regulator on the change in IPO venue. Shein’s decision to explore the London option reflects its strategy to bypass potential US regulatory obstacles due to its Chinese origins. Shein has yet to comment further on the matter.
Superdry has secured a significant reprieve in its restructuring efforts as M&G, the landlord of its London flagship store, has opted not to formally challenge the fashion chain’s rescue plan. After consulting with lawyers from Hogan Lovells, M&G decided against opposing the restructuring proposal, which includes steep rent reductions but avoids UK store closures. British Land, another major landlord, has also decided not to challenge the plan. Superdry’s founder Julian Dunkerton will inject multi-million-pound funding to support the restructuring. The plan has caused concern among landlords about their lack of participation in potential future recoveries.
M&S CEO Stuart Machin believes the company should have already surpassed Waitrose in market position, following a significant rise in profits and sales. M&S reported a 41% increase in profits to £673m and growth in both its food and fashion sectors. Machin, in an interview with The Telegraph, highlighted the need for continuous improvement and focus on customer service, suggesting that hands-on assistance in stores can significantly boost sales. He also sees substantial potential for growth in M&S’s e-commerce sector, aiming to enhance the digital shopping experience and improve customer interaction through the app.
Pashley Cycles has appointed Andy Smallwood as its new CEO, effective June 3. Smallwood brings over 20 years of experience in the cycling industry, having previously served as chief executive at Ribble Bikes and managing director at Boardman Bikes. He also held a senior product manager position at Halfords. In his new role, Smallwood will collaborate closely with chairman Adrian Williams to shape the strategic direction of Pashley.
Frasers Group has named Sir Jon Thompson, former CEO of the Financial Reporting Council, as a non-executive director. Thompson’s extensive background in corporate governance, reporting, and large-scale project management will support Frasers’ long-term growth strategy. His previous roles include chair of HS2, CEO of HMRC, and permanent secretary of the Ministry of Defence, where he managed significant projects and change programs.