Today’s news in brief-30/9/24
Boohoo is reportedly considering a break-up of its business, following pressure from shareholders to revive the company’s declining fortunes. Boohoo’s share price has dropped by over 85% in the last five years, and the company has faced widening losses. The board is said to be contemplating spinning off its core brands, which include PrettyLittleThing, Karen Millen, and Debenhams, to unlock greater value for shareholders.
Alteri Investors, the former owner of Missguided, is in early-stage talks to acquire luxury footwear and accessories brand Kurt Geiger, according to reports from Sky News. The potential acquisition comes as several parties, including other luxury goods companies and private equity firms, are considering bids for the brand, which has been owned by Cinven since 2015. Cinven appointed Bank of America to oversee the sale of Kurt Geiger, with the auction expected to fetch around £400m, though it remains unclear what valuation a deal with Alteri would command.
Marks & Spencer (M&S) is exploring the possibility of opening a vast new warehouse in the Midlands as part of its efforts to meet the growing demand for online shopping, particularly in its fashion and homeware categories. According to reports from The Telegraph, M&S has been searching for a one-million-square-foot site in the Northamptonshire area, though no formal decisions have been made. operations.
Luxury brand Mulberry has revealed plans to raise £10m as it faces a loss of £34.1m for the financial year ending March 2024. The company attributed the loss to reduced revenue and margins, as well as rising operational costs, particularly during a challenging second half of the year influenced by ongoing macroeconomic uncertainty. Group revenue fell by 4% to £152.8m, with UK retail sales down by 3% to £84.7m. The company cited inflationary pressures as a factor impacting consumer spending, though international sales grew by 8%, driven by strong performances in the U.S. and Europe.
Dreams reported a 2.2% increase in turnover to £395.4m for the year ending December 2023, following significant investments in store expansion and upgrades. The company opened two new stores and refitted 22 others in January 2024, with plans to continue its expansion into 2025. Despite the challenging economic environment, Dreams managed to grow its market share, with like-for-like orders up by 4.4%.
Lookfantastic, owned by THG, opened its first permanent concept store in Greater Manchester, offering customers an immersive experience with access to over 90 beauty brands, including exclusives like Dr Loretta. The store brings together skincare professionals and beauty experts, offering treatments and personalised services. The store also features a recycling station and incorporates Lookfantastic’s commitment to sustainability.
