Today’s news in brief-20/1/25
Quiz is reportedly considering closing up to a third of its 60 stores as part of a restructuring effort to stabilise its business amid mounting financial pressures. The company is set to delist from the AIM market and return to private ownership following a shareholder vote earlier this month. Restructuring experts from Teneo have been brought in to explore options, including a potential pre-pack administration or company voluntary arrangement (CVA) to facilitate the closures.
Pets at Home CEO Lyssa McGowan has voiced concerns about the impact of recent Budget measures on part-time workers and women. She warned that changes to National Insurance thresholds, effective from April, will significantly increase costs for employers, particularly those relying on part-time staff. Pets at Home anticipates an £18m rise in costs due to these changes, which McGowan criticised as a surprising burden on businesses. Meanwhile, the company’s veterinary practices delivered double-digit revenue growth, driven by increased subscriptions, visits, and transaction values. However, the Competition and Markets Authority (CMA) is investigating rising veterinary costs linked to consolidation, with over half of UK veterinary clinics owned by a small number of companies, including Pets at Home.
The British Independent Retailers Association (Bira) has called for urgent government support following a decline in December retail sales. Figures released by the British Retail Consortium (BRC) show a 0.3% drop in sales volumes, reversing a modest 0.1% rise in November. Non-food retailers, such as clothing stores, saw some improvement, but this was insufficient to offset declines in other sectors, particularly supermarkets. Bira, representing over 6,000 independent businesses, warned that rising business costs, including a planned 140% increase in business rates, pose a serious threat to high-street retailers.
Asda is at risk of incurring substantial fines for failing to meet a February deadline to complete an £800m IT upgrade, according to sources. The supermarket chain’s Project Future aims to transition its systems away from those of former owner Walmart. However, delays have plagued the project, which is critical to Asda’s strategic turnaround plan. Earlier setbacks included payment errors affecting tens of thousands of employees and disruptions to its George clothing line. Mohsin Issa, who prioritised the project, stepped back from day-to-day operations in September, leaving the task to new leadership under Lord Rose.
Portmeirion Group has announced the appointment of Peter Tracey as its new non-executive chairman, effective 1 February 2025. Tracey, who is managing director of Blackdown Partners and holds other directorships, succeeds Dick Steele, who will step down after overseeing the group’s growth and acquisition of brands such as Spode, Royal Worcester, and Wax Lyrical.
