Today’s news in brief-12/12/24
Central Group’s executive chair Tos Chirathivat admitted to overpaying in hindsight for Selfridges and other European luxury department stores as part of a £4bn deal in 2021. Chirathivat told the FT the price felt steep given rising global interest rates but noted the valuation may look more reasonable in a decade. The deal expanded Central’s European luxury portfolio, including Dutch chain De Bijenkorf and Ireland’s Brown Thomas, but complications arose as partner Signa Holding collapsed in late 2023, triggering billions in losses for investors. Italian prosecutors later issued an arrest warrant for Signa’s founder René Benko over alleged business improprieties. Central struck a deal with Saudi Arabia’s PIF to buy Benko’s stake, allowing PIF to hold 40% of Selfridges.
Shein’s IPO plans on the London Stock Exchange face delays as the Financial Conduct Authority (FCA) scrutinizes the fast fashion giant’s supply chains. The FCA’s extended review follows advocacy group challenges concerning alleged ties to forced labor in China’s Uyghur regions. The IPO was initially targeted for early 2025, with Shein executives, including founder Chris Xu, engaging UK investors to test market appetite. Regulatory complexities have long plagued Shein, forcing the company to shift its IPO plans from New York to London due to strained US-China relations. China’s securities regulators are also yet to approve the move.
Currys narrowed its half-year losses to £10m, a significant improvement from £44m the previous year, supported by a 1% revenue rise to £3.9bn. The UK and Ireland drove growth with like-for-like sales up 5%, yielding £23m in adjusted EBIT. Despite a 2% revenue dip in the Nordics, adjusted EBIT surged 50% to £18m. CEO Alex Baldock highlighted the group’s dominance in AI laptops, with a 75% UK market share, and improvements across online and in-store operations.
Boohoo Group CEO Dan Finley emphasised Debenhams’ value, claiming it outweighs the group’s current £500m+ market cap. In a video statement, Finley, who became CEO in November, asserted that Debenhams’ transformation into a profitable marketplace model underpins Boohoo’s broader strategy to replicate this success across its other brands. Boohoo recently secured £222m in refinancing to support its next growth phase amid pressures, including a public spat with Frasers Group.
