Today’s news in brief-5/2/24

Authentic Brands, the owner of Ted Baker, is reportedly exploring cost-saving options after terminating its relationship with AARC, the company responsible for Ted Baker’s UK operation. The potential measures include store closures, job cuts, or a Company Voluntary Agreement (CVA) to reduce rent rates or exit stores. Authentic had provided a short-term loan to AARC in October but terminated the relationship due to AARC’s failure to meet financial obligations. Authentic is now considering restructuring, and reports suggest a CVA is being contemplated to address Ted Baker’s rent bill, pending approval from landlords and creditors.

Superdry’s CEO, Julian Dunkerton, is reportedly in talks with investors for a potential take-private deal. Dunkerton, who owns a 20% stake, is engaging with financing partners, including discussions with Gordon Brothers and Rcapital. Speculation around a buyout intensified as Norwegian hedge fund First Seagull acquired a 5.3% stake. Superdry is grappling with widening losses, and Dunkerton has until March 1 to decide on a potential offer. The company is also exploring options with PwC advisers, including a company voluntary arrangement or other forms of restructuring.

Morrisons’ group retail director, David Lepley, has stepped down after almost eight years with the company. It’s uncertain whether Lepley will be replaced as new CEO Rami Baitieh aims to revive the business, which has seen a slip in market share since the pandemic. Morrisons recently announced a deal to sell 337 petrol forecourts for £2.5bn .

Zuber Issa, is considering selling his 22.5% stake in Asda to focus on EG Group’s petrol station business. The potential sale, valued at over £500m, would require approval from Mohsin Issa and TDR Capital.

Chancellor Jeremy Hunt has asked the Office for Budget Responsibility to review the scrapping of VAT-free shopping for tourists, a decision made in 2020. The review aims to assess the costs and benefits associated with the decision and will be published alongside the upcoming Budget. This comes as concerns are raised about the impact on Britain’s retail and leisure sectors, with warnings that the country is losing its reputation for iconic retail.