Today’s news in brief-21/3/25
In The Style has been rescued from administration through a pre-pack sale to Alps Sourcing Limited, saving 87 jobs. The Manchester-based company, known for its celebrity-inspired high street fashion, had reached a peak valuation of £105m in 2021 following its AIM listing. However, financial struggles, including significant debt and cash flow issues, led to its de-listing and eventual acquisition by Baaj Capital in 2023. Despite efforts to stabilize, rising costs and economic challenges forced the company into administration. The sale to Alps Sourcing marks a turning point, with hopes of restoring profitability and financial stability.
Nike reported a 9% drop in Q3 revenues to $11.3bn, driven by declines across all regions. Brand revenues fell to $10.9bn, with direct revenues dropping 12% due to a 15% decline in Nike Brand Digital sales and a 2% decrease in Nike-owned stores. Wholesale revenues also fell by 7%, while Converse revenues plummeted 18%. Greater China saw the sharpest decline at 17%. Despite the downturn, Nike remains focused on its “Win Now” strategy, emphasizing product innovation and brand momentum through sport.
London’s store closures returned to pre-pandemic levels. In 2024, Greater London saw five store closures and four openings daily, resulting in a net loss of 564 stores. This marks an improvement from previous years, with a closure rate of -1.9%, the lowest since 2018. Nationally, chain outlet closures fell to their second-lowest level in a decade, with 12,804 closures and 9,002 openings. Convenience stores and coffee shops led the way in new openings, while banks, chemists, and fashion stores saw significant closures. Retail parks were the only location type showing growth, with a 0.4% increase in chain outlets.
Westfield London is launching a new health and wellness zone, featuring over 50,000 sq. ft. of premium space. The zone will include a range of services, such as laser eye surgery clinic Betterview, Prince Pharmacy, Effect Doctors, StretchLab, and So.Shell. The initiative reflects the growing demand for accessible health and wellness experiences within retail settings. Unibail-Rodamco-Westfield aims to create innovative spaces that cater to evolving consumer needs, with the new zone set to enhance the customer experience and support lifestyle priorities.
Asos has raised its profit outlook for the first half of the year, driven by strong gross margin growth and cost discipline. The online fashion retailer expects a 13% increase in total sales, with an adjusted EBITDA of £34m and a margin of 2.6%. Own-brand full-price sales returned to growth, supported by its market-leading test-and-react model. The positive outlook follows a surge in share price after its largest shareholder, Anders Holch Povlsen, increased his stake to just under 30%, sparking speculation of a potential takeover. Asos continues to align its structure with its growth strategy, including the recent appointment of its first managing director.