Today’s news in brief-6/12/23

Farfetch is reportedly contemplating the sale of fashion retailer Browns as part of efforts to secure the company’s future amid a funding crisis. Founder José Neves is in talks with shareholders and JP Morgan about potentially delisting the business. The company is also in discussions with Richemont for additional funding. Despite facing financial challenges, Farfetch has no interest in further investment from Richemont. The company has refrained from publishing its third-quarter results, raising concerns about its financial health. Farfetch currently has £2.2bn in financial obligations, including loans and a credit facility.

Matches Fashion is reportedly exploring funding options to support its turnaround strategy and has hired advisory firm Teneo for assistance. The fashion destination, which posted an adjusted EBITDA loss of £33.7m for FY22, aims to secure around £50m. Despite a slight dip in revenues to £380.1m, Matches reported increased order demand at £758.2m. The company secured £20m of additional capital in June 2023 as part of a £60m investment from owner Apax Partners. Matches expects £10m of operational cost savings in FY23, leading to a substantial improvement in losses and fixed costs.

Moonpig Group has experienced a positive first half of the year, with a 6.5% growth in revenues to £152.1m and a profit-before-tax increase from £18.9m to £20.8m. The group attributed the success to the Moonpig brand, which saw a 4.9% increase in revenues. The Netherlands-based Greetz, however, faced a 9.8% revenue decline. Moonpig’s focus on technology innovation, including AI-driven features like video and audio messages, contributed to the growth. The group is also pleased with the traction gained by Moonpig Plus subscriptions, driving higher customer order frequency. The CEO, Nickyl Raithatha, highlighted the importance of technology in driving growth and expressed confidence in meeting full-year expectations despite a challenging macroeconomic environment.

Part of Essex’s Lakeside shopping centre will be demolished to make way for a £200m warehouse and distribution centre, impacting stores like Boots, M&S, Asda Home, and Burger King. The redevelopment aims to create 700 jobs and is scheduled for completion in 2025. British Land’s planning director, Jayme McArthur, emphasised the need for consolidation due to oversupplied retail in the area. The investment in logistics is seen as a response to the changing retail landscape, and British Land believes it will benefit Thurrock. Lakeside shopping centre is set to undergo significant transformation as part of this strategic redevelopment.

Sergio Rossi, the luxury Italian footwear and accessories brand, has appointed Helen Wright as its new CEO. Wright, previously the CEO of Bloch International, Belstaff, and Anya Hindmarch, will be responsible for the brand’s strategic transformation, global strategy, and sustainable growth. The appointment follows the interim CEO, Paul Kotrba, who took over after the exit of former CEO Riccardo Sciutto. Wright expressed excitement about joining Sergio Rossi, highlighting the brand’s heritage, quality, and style. She emphasised the importance of collaboration with stakeholders and business partners as the brand looks toward the future.