Today’s news in brief-7/10/24
Mulberry founder Roger Saul has suggested that luxury retailer Mulberry might be a better fit with European luxury group LVMH rather than Mike Ashley’s Sports Direct, following Ashley’s unsuccessful £83m bid to acquire the company. Saul, who founded Mulberry in 1971, emphasised that the brand had drifted from its original spirit, becoming overly dependent on handbags. Ashley, now the second-largest shareholder behind Singaporean billionaire Ong Beng Seng, aims to take his retail portfolio more upmarket.
Mytheresa has agreed to buy Yoox Net-A-Porter (YNAP) from Richemont in a €555m deal. Richemont will take a 33% stake in Mytheresa, while providing a six-year revolving credit facility of €100m for YNAP’s operational needs. The deal, expected to close in the first half of 2025, will consolidate Mytheresa’s luxury offerings with YNAP’s brands—Net-A-Porter and Mr Porter—creating a trio of distinct but complementary storefronts.
John Lewis Partnership announced that CEO Nish Kankiwala will revert to his previous non-executive director role by March 2025, with Jason Tarry, the chairman of the board, taking a more active leadership role. Kankiwala, who became CEO in 2023, played a key role in guiding John Lewis through a critical phase of transformation, improving cash flows, and returning the company to full-year profitability. He expressed pride in leading the company during this time of change.
Carpetright’s owner, Nestware, suffered a £10.8m financial hit following the collapse of its flooring subsidiary, The Floor Room. The company went into administration in August, resulting in 201 job losses and leaving behind a £10.8m intercompany loan. The Floor Room had been the sole flooring supplier for John Lewis stores. In addition, Nestware also had to write off £175.4m related to Carpetright, which entered administration in late July. This includes a revolving credit facility of £120m and loans amounting to £54.7m. Carpetright owes over £3.5m in rent to 11 retail businesses and has outstanding customer orders worth £8m.
Footasylum has secured a £35m funding package from HSBC UK to accelerate its growth plans. The package includes a Sustainability Improvement Loan, linking borrowing costs to the retailer’s sustainability performance, monitored through an EcoVadis ESG rating. Acquired by Aurelius in 2022, Footasylum has embarked on an aggressive expansion strategy, opening a flagship 20,000 sq ft store in London’s Oxford Street and other outlets across the UK.
Weird Fish reported an 80% increase in EBITDA to £2.6m in 2023, despite a 4% drop in revenue to £38m. The company’s focus on profitability led to a nine-point rise in gross margin, reaching 56%. Weird Fish has opened seven new stores in resort destinations and plans to expand further by opening five more standalone stores by the end of 2024, with another seven expected in 2025.
