Today’s news in brief-25/10/24
Boohoo has countered Frasers Group’s claims of “stone-walling” regarding the latter’s push to install Mike Ashley as Boohoo’s CEO. In response to an open letter from Frasers, which accused Boohoo’s board of hindering its proposals and expressed dissatisfaction with Boohoo’s recent debt refinancing, Boohoo stated that Frasers’ preference for Ashley as CEO was only recently communicated, and Frasers had previously ruled out Ashley for the role. Boohoo raised governance concerns about Ashley’s potential appointment, noting Frasers’ 73% ownership of Frasers Group and its substantial stake in competitor Asos. Boohoo remains open to discussions but emphasises that governance protections must be met to safeguard Boohoo’s interests and those of its shareholders..
UK consumer confidence has weakened ahead of the budget, according to GfK’s index, with the measure falling to -21 in October. GfK’s report showed that three out of five key metrics declined, including personal finances over the past year and expectations for the general economy, although there were slight improvements in the savings and major purchase indexes compared to last year. The drop in confidence comes as the government signals austerity measures ahead of the budget, raising concerns among consumers.
John Lewis has revealed upgrades to its Oxford Street flagship store as part of a £800m investment. The Oxford Street, High Wycombe, and Cheadle stores now feature expanded Beauty Halls, with the Oxford Street location benefiting from comprehensive refurbishments across six floors.
Frasers Group has opened a 70,000 sq. ft. Flannels store in Leeds, featuring luxury fashion, beauty, homeware, a resale section, and partnerships with health brand HiiCLUB for on-site fitness classes. The Leeds store is the latest in Frasers’ “flagship” store series, joining locations across the UK. David Epstein of Frasers Group highlighted the Leeds site’s range of services, aimed at creating a multi-faceted luxury shopping experience that combines fashion, fitness, and dining under one roof.
Vinted recently expanded its portfolio with a €340m share sale, valuing the company at €5bn. New investors like TPG joined long-term backers in this transaction, which positions Vinted for expansion beyond clothing into electronics and enhances its shipping operations in Europe. Vinted’s payments division recently acquired an EMI licence to streamline member transactions.
Bestway Retail has bolstered its leadership with three senior appointments as part of its strategic support for independent retailers. Nick Russell rejoins as head of symbol, overseeing the Best-One and Costcutter brands, bringing extensive experience from his prior role in Costcutter and Morrison’s Daily. Steve Moore will take on the regional controller role for Costcutter and Best-One in 2025, while Rodney Tucker will focus on new business recruitment in Southwest England and South Wales.
