Today’s news in brief-3/12/24
Boohoo has repaid £50m of its £97m term loan following a £39.3m oversubscribed fundraising effort. The move aligns with its turnaround strategy after half-year losses tripled to £27.4m and revenue dropped 15% to £619.8m. CEO Dan Finley called Boohoo “significantly undervalued” as major shareholders, including the Kamani family, boosted their stakes, signaling confidence in the plan to streamline operations and restore growth.
Mike Ashley, founder of Sports Direct, is suing HMRC for data breaches related to a £13.6m tax dispute stemming from a 2012 property sale. Ashley’s lawyers accuse HMRC of stonewalling data requests for over a year, leading to court action. HMRC admitted initial failings but claims to have remedied its actions. The case centers on Ashley’s efforts to clarify discrepancies in tax demands, with a decision pending.
UK retail sales fell 3.3% in November, reflecting weak consumer confidence despite higher food sales (+2.4%) over the past three months. Non-food sales dropped 2.1% as households delayed winter purchases. Analysts attribute the slump to Black Friday’s timing, shifting some sales into December. Retailers hope late-season spending will compensate, but rising operational costs may lead to further price hikes and job losses.
Mango has exceeded its 2024 US expansion goal, opening 42 stores ahead of schedule, with plans to reach 65 by 2025. The retailer also launched a second logistics center and aims to double its US workforce. Mango sees the US as a key growth market, targeting a top-three position in turnover by 2026, fueled by double-digit sales growth and a strategic push into major cities.
Charity Super.Mkt plans to expand its second-hand clothing pop-ups to 12 new locations in 2024 after generating £3m in sales since its launch. The initiative, which partners with over 55 UK charities, aims to tap into the growing demand for sustainable fashion. Co-founders Maria Chenoweth and Wayne Hemingway credit the concept’s success to shifting consumer values and are exploring international collaborations.
