Today’s news in brief-6/9/24
Burberry, a fixture in the FTSE 100 for the past 15 years, has been demoted to the FTSE 250 following a steep decline in its share price, which has plummeted by around 50% over the last six months. The luxury fashion house has been hit hard by a slowdown in demand across the high-end retail sector, particularly in key regions like the Asia Pacific and the Americas.
The Confederation of British Industry (CBI), under the leadership of CEO Rain Newton-Smith, has intensified calls for the UK government to overhaul the “antiquated” business rates system in England. The CBI argues that the current system is overly complex, unpredictable, and unfair, stifling productivity and economic growth. In preparation for the upcoming Autumn Budget, the CBI has gathered input from firms across 12 sectors, including retail and manufacturing, to propose a more competitive and transparent business rates system..
Gear4music has reported that it is on track to achieve revenues of £154.7m for the fiscal year ending 31 March 2025. The company’s executive chair, Andrew Wass, expressed satisfaction with the trading performance so far, noting that the business has successfully reduced net debt and operating costs during FY24.
The Body Shop, which recently fell into administration, is on the brink of securing more than £30m in working capital from Hilco Capital. This funding is part of a rescue deal being finalised by the chain’s new owners, Aurea Group, a consortium led by businessman Mike Jatania. The Body Shop’s collapse into administration occurred just three months after Aurelius, a private equity firm, acquired the company in a £207 million deal.
H&M has announced the revival of its Cheap Monday brand with a new denim collection. The collection, which features American artist Nessa Barrett, will be available exclusively through Asos. Cheap Monday, known for its trendy and affordable denim, was originally established in 2004 but was shuttered by H&M in 2018 due to poor sales.
Tesco has expanded its accelerator program by adding 16 new brands to its 2024 cohort, furthering its commitment to fostering diversity and innovation within its supply base. The accelerator program, which provides a year-long mentoring, learning, and development experience, aims to introduce small, trend-led brands to Tesco’s shelves while supporting diversity and sustainability.
