Businesses in financial trouble

[mavhc]

Bit mean to keep mentioning the Titanic after all these years

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Overpriced furniture & fashion retailer Laura Ashley collapses.

 

Link: Laura Ashley bought by US owner of Ben Sherman | Laura Ashley | The Guardian

 

Laura Ashley has been acquired by New York-based Marquee Brands, the owner of 17 businesses including Ben Sherman and Martha Stewart.

 

The clothing and home furnishings brand, best known for its floaty floral frocks, has been sold by Gordon Brothers.

 

Gordon Brothers has owned Laura Ashley since 2020, when the US restructuring specialist bought the business out of administration after it became the first major retail casualty of the Covid pandemic.

 

The company, which has no stores of its own, made a return to the high street the following year through a deal with Next.

 

Laura Ashley also has deals in place with DFS and John Lewis in the UK, and is available in 150 shops globally via a network of overseas licensees.

 

The deal with Marquee Brands will result in Laura Ashley’s UK-based team, which is run by Poppy Marshall-Lawton, being retained and the US company opening its first European headquarters in London.

 

Heath Golden, the chief executive of Marquee Brands, said: “With the existing UK team in place, we are primed and ready to leverage Laura Ashley’s seven-decade legacy to unlock its future potential as a full lifestyle brand innovating new products and categories.

 

“Laura Ashley’s licensed business model and robust group of high-quality partners makes the brand a seamless addition.”

 

The company was founded on Laura and Bernard Ashley’s kitchen table in 1953, starting as a purveyor of affordable country living-inspired products such as headscarves and napkins.

 

In the 1970s it took off as a fashion brand, its floppy floral dresses becoming a wearable mainstream version of hippy culture.

 

By the time of Laura’s death from a brain haemorrhage in 1985, the brand had 220 stores globally and was a staple of the Sloane Ranger set, led by Diana, Princess of Wales.

 

During the noughties the company built up its homeware operation, which accounted for 80% of the business at the time of its collapse.

 

However, by the mid-2010s, sales and profits began a spiral of decline, putting Laura Ashley on the brink of collapse even before the pandemic shuttered all UK shops.

 

Before going into administration, Laura Ashley had been listed on the London Stock Exchange but was controlled by the Malaysian group MUI.

[Miscbrah]

I remember earlier Astra's (much like my Mk4) had a slightly off centre wheel. I also remember the Nova had a steering wheel was considerably off centre!

 

Did it really? Had three mk4 Astras and never even noticed!

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Link: Chesterfield shop shuts as Dragons' Den star takes over company - BBC News

 

A craft hub in Derbyshire has closed after the business, which was founded by Dragons' Den star Sara Davies, went into administration.

 

The Crafter's Companion store, in Chesterfield, was shut by administrators on 7 January, leaving 10 people redundant, but the Evesham base, in Worcestershire, has remained open.

 

The company was founded by Ms Davies in 2005, while at university.

 

She said she later sold the majority of it, but bought it from administrators on 7 January and is a major shareholder again.

 

She said: "It's never easy making staff redundant, and I understand why it has come as a shock to employees but there was no way this could be avoided."

 

The entrepreneur said: "The decision to close the loss-making Chesterfield store was taken by the administrators in preparation for the sale of the business to us."

 

"The actual closure happened after we acquired the business," she added.

 

Ms Davies said the store had not traded profitably "for quite some time, and it couldn't remain part of the Crafter's Companion family going forwards".

 

The company - which sells crafts supplies - has a head office and warehouse in County Durham, a store in Evesham and the former shop in Chesterfield.

 

She said: "I'm proud that we have saved over a hundred jobs in the North but I'm very sorry that these colleagues had to leave the family."

 

Ms Davies added as the business has been rescued from administration, saving more than a hundred jobs, it was "important to make sure that we focus our efforts" on the remaining store and website, "to ensure Crafter's Companion's future success".

 

She added: "I have invested my own money back into the business, and alongside a new financial partner who has also invested, I am now a major shareholder again."

 

Ms Davies became the youngest ever female dragon to join BBC One's Dragons' Den and was awarded an MBE for services to the economy in 2016.

 

She receive an honorary degree from the University of York in 2024 in recognition of her "outstanding contribution to society".

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Link: Outdoor learning company closes seven UK activity centres - BBC News

 

Seven residential activity centres for schools have closed after the company that ran them went in administration.

 

The Inspiring Learning Group said the centres - operated by its subsidiary Kingswood - would close immediately, adding it was "devastated".

 

Three Kingswood centres have been acquired by outdoor education firm PGL Beyond (PGL) and will stay open. They are Overstrand Hall in Cromer, Norfolk, Dearne Valley in Doncaster and Grosvenor Hall in Ashford, Kent.

 

PGL, external said: "This will ensure that the the planned residentials for over 50,000 young people in 2025 will go ahead."

 

The Kingswood centres closing immediately are:

 

• West Runton, Norfolk
  
• Green Park, Buckinghamshire
  
• Dukeswood House, Northumberland
  
• Peak Venture, South Yorkshire
  
• Staffordshire, near Wolverhampton
  
• Ryde, Isle of Wight
  
• Colomendy, north Wales

In a statement, Kingswood, external said: "We are very sorry to let you know that we have gone into administration.

 

"Unfortunately, seven of our centres will now close, and any planned trips to these will not be fulfilled by Kingswood."

 

It added: "We appreciate that this news will be difficult to absorb..."

 

Kingswood said PGL had agreed a deal with administrators "to provide a package of support to groups where centres are closing, by offering alternative arrangements at PGL centres, with no financial impact to parents".

 

PGL said its acquisition of the three centres had secured 150 jobs.

 

Its chief executive, Anthony Jones, said: "We know how important a milestone in a young person's journey a school residential provides, and are mindful of the potential impact should they miss out on this life-changing experience."

[LeMarchand]

Noooooooooo! Poundland is struggling.

 

The owner of Poundland, one of Britain's biggest discount retailers, has drafted in City advisers to explore radical options for arresting the growing crisis at the chain.

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Link: Historic jump in companies in critical financial distress - BBC News

 

There's been a record jump in the number of UK businesses in critical financial distress, according to insolvency specialists.

 

This comes at the same time as a drop in consumer confidence as more people have concerns over the UK's financial prospects as well as their own.

 

In their latest report, insolvency experts at Begbies Traynor said a company can be considered in critical financial distress if they have an outstanding county court judgment of over £5,000 or face a winding-up petition.

 

Businesses in the most distress include those in hospitality, leisure, and retail.

 

While there's often a jump at year-end of companies in critical financial distress, the report found a record increase of 50% from September to December 2024, taking the number of companies in this category to 46,583 businesses.

 

One factor was HMRC becoming more aggressive in recovering overdue taxes owed.

 

The number of UK businesses considered to be in significant financial distress also rose by 3.5% on the prior quarter to 654,765.

 

Ric Traynor, executive chairman of Begbies Traynor, said: "After a historic rise in critical financial distress in the last quarter of 2024, it's clear that many distressed UK businesses are finding it almost impossible to navigate the challenges they face as we start 2025."

 

"For many businesses which were already dealing with weak consumer confidence and higher borrowing costs, the increase in national insurance contributions and the national minimum wage, announced at the last Budget, could be the last straw."

 

He said sectors like retail and hospitality could be impacted in particular because they typically "operate on razor-thin margins".

 

"I fear 2025 could end up being a watershed moment where thousands of UK businesses 'call time' after struggling to survive for years," he added.

 

A separate report showed a slight fall in confidence among consumers in their own finances and a much sharper one over the prospects for the wider economy.

 

The long-running survey from GfK showed people's intentions to spend on big-ticket items fell while the number of people considering putting money aside in savings rose.

 

GfK said that was a negative for the economy as it was a sign that many people saw dark days ahead and were putting money aside for safety.

 

Neil Bellamy, consumer insights director at GfK, said: "New year is traditionally a time for change, but looking at these figures, consumers don't think things are changing for the better.

 

"These figures underline that consumers are losing confidence in the UK's economic prospects."

[Andrew_C]

One factor was HMRC becoming more aggressive in recovering overdue taxes owed.

Translates as "If we cheat and don't pay our taxes, we're profitable."

[LeMarchand]

Sainsbury's is cutting jobs: https://www.independent.co.uk/news/business/sainsbury-s-job-cuts-cafes-hot-food-budge-reeves-b2684970.html

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Link: AllBright, London’s women-only members’ club, enters administration | Entrepreneurs | The Guardian

 

AllBright, the women-only members’ club with a five-storey townhouse in Mayfair, London, has entered administration, the Guardian can reveal.

 

The networking and events business – which was co-founded by the Telegraph Media Group’s chief executive, Anna Jones, and the co-chair of the Invest in Women Taskforce, Debbie Wosskow – emailed members last week to say it was closing the doors of its building just off Regent Street.

 

Still, some staff and business members did not learn of its administration until Tuesday morning.

 

The club first opened on International Women’s Day in 2018, and its name was inspired by the former US secretary of state, Madeleine Albright, and her remark: “There’s a special place in hell for women who don’t help each other.”

 

AllBright had struggled amid the Covid-19 pandemic and the disruption to working patterns. Still, its closure comes amid a supposed boom in the wider private members’ club sector.

 

The club’s individual memberships started at £1,950 a year, with corporate membership at £1,500. Its townhouse on Maddox Street boasted two restaurants, a bar, a hair salon and roof terrace.

 

The company’s latest set of accounts are overdue, according to filings on Companies House.

 

Jones and Wosskow stepped back from their roles as directors at the company in February 2023. Viviane Paxinos, a former media executive, had taken over as chief executive the previous year.

 

In the year to March 2022 – the latest set of available accounts – AllBright reported a pre-tax loss of £6.2m.

 

The new administration comes two years after Cain International, co-founded by a director and co-owner of Chelsea football club Jonathan Goldstein, wrote off AllBright’s debts and reinvested in the business via a pre-pack administration.

 

Private members’ clubs were described as one of the fastest-growing real estate sectors by lettings and property agents Knight Frank in a report in September.

 

Members were emailed last week to be told that they would have access to a “dedicated lounge” at the Old Session House in Farringdon.

 

The email read: “Sadly, with rising rents and the scale of the building, combined with its premium location, the Mayfair townhouse is no longer viable. While events, networking opportunities and learning programmes remain in high demand, the social and dining spaces were underutilised.”

 

A spokesperson for AllBright declined to comment.

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Link: Burslem's Royal Stafford goes bust, bringing an end to a 200-year history - BBC News

 

A pottery firm whose site has a manufacturing history dating back more than 200 years has collapsed into liquidation, according to a union.

 

Royal Stafford, based at the Royal Overhouse Manufactory in Burslem, Stoke-on-Trent, called in administrators on Tuesday with the loss of more than 70 jobs, the GMB Union said.

 

The brand was established in 1845 but records indicate its Royal Overhouse Manufactory site was in use in 1787 and operated by Thomas Wedgwood, according to the firm's website.

 

The company and its bosses have been approached by the BBC for a comment.

 

A union spokesperson said the firm's collapse was a "wake-up call" for the government and its industrial strategy.

 

Colin Griffiths, from the GMB, warned Britain could lose its ceramics and pottery industry without government intervention.

 

"Our ceramic and pottery industry is vital for economic growth and supports thousands of jobs across the UK," he added.

 

Call for urgent council meeting

 

The Royal Stafford brand was established in 1845 and the firm described itself as one of the handful of potteries with all production taking place in England.

 

A spokesperson for the city council said their priority was supporting the firm's employees.

 

The authority said it would help with benefits advice, CV writing, job searching and interview techniques.

 

The council's leader Jane Ashworth, would write to Royal Stafford's owners to request an urgent meeting, they added.

 

"We know that national factors including high energy bills have made things more difficult for local employers but we are committed to improving our economy," they said.

 

"This includes major plans for Burslem, involving the regeneration of the town as part of a multi-million pound city-wide package of public realm improvements."

[LeMarchand]

Homebase closures: https://www.standard.co.uk/news/uk/homebase-shop-closures-uk-full-list-february-b1209578.html

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Link: London Irish: Eddie Jordan-led consortium buys club out of administration - BBC Sport

 

London Irish Rugby Club have been bought out of administration by a consortium led by former Formula 1 team owner and businessman Eddie Jordan.

 

In June 2023 London Irish were forced out of the Premiership because of unpaid wages and shortly after put into administration by former owner Mick Crossan with debts of about £30m.

 

They were punished after missing a deadline to make those payments or complete a takeover, and as a result are currently not allowed to play in any league.

 

Jordan's group, called 'The Jordan Associates', says it is targeting a "swift return" to competing professionally as well as promising to "introduce an innovative fan ownership model", offering supporters the opportunity to invest in the club.

 

"The primary goal of the new ownership is to return London Irish Rugby Club to the pinnacle of international professional club rugby, aiming for a swift return to top-flight competition," it said.

 

"The Jordan Associates team will now turn its attention to negotiating a full and sustainable return for London Irish to competitive rugby, hand-in-hand with London Irish's supporter base."

 

The Jordan Grand Prix F1 team competed between 1991 and 2005, winning four races between 1998 and 2003.

 

"We are incredibly excited about this opportunity to steer London Irish towards new heights," Jordan Associates senior partner Kyle Jordan - Eddie Jordan's youngest son - said.

 

"Our investors bring not just financial backing but a profound passion for rugby and a commitment to the community, and in particular want to reach out to the global Irish diaspora to build the exile brand." ...

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Posting this item without comment. Also: Click the link with care as some images may be NSFW

 

Link: Hooters, US restaurant chain known for iconic uniforms, 'heading for bankruptcy' in 2025 | News US | Metro News

 

Hooters is preparing to file for bankruptcy to restructure its business likely in the next two months, sources told Bloomberg on Friday. The plans, underway with the law firm Ropes & Gray, are not definite.

 

The casual dining chain has experienced a drop in customers and closed some locations in recent years. In 2021, Hooters sold roughly $300million in bonds backed with assets which included franchise fees.

 

Hooters went ‘from humble beginnings to worldwide success’, according to the history page on its website.

 

The first Hooters opened in 1983 in Clearwater, Florida, when ‘six businessmen with no restaurant experience whatsoever got together to open a place they couldn’t get kicked out of’, states the site.

 

‘More than three decades later, the Hooters brand has grown into an international sensation, with more than 420 Hooters in 29 countries,’ it states...

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Link: Technicolor: Historic visual effects studio collapses in UK - BBC News

 

Technicolor, the visual effects (VFX) group which has worked on films ranging from Disney's 1940 classic Pinocchio to 2024 blockbuster Mufasa The Lion King, has collapsed into administration in the UK.

 

The group owned several leading visual effects studios including MPC, Mikros Animation and The Mill, with operations in the US, UK, Canada and India.

 

Technicolor's directors had been looking to sell the business, but were not able to find a buyer.

 

Its administrators said "the majority" of the more than 440 people it employed in the UK have been made redundant. The appointment of administrators relates only to the UK arm of its business.

 

"The economic headwinds which are affecting companies right across the creative industries have proved too challenging to overcome, which has led to Technicolor's UK business being placed into administration today," the firm's joint administrator Nick Holloway said.

 

Technicolor was founded in 1915 and worked on its first film in 1917. In its early days it worked on projects with major studios including Disney.

 

It subsequently acquired major VFX studios including The Mill, which won an Oscar in 2001 for its work on Gladiator, and MPC, which recently delivered big budget remakes of Disney's The Lion King and Jungle Book.

 

Recent projects include "Kraven the Hunter," "Young Woman and the Sea" and "Emilia Perez" according to Variety., external

 

Mikros Animation projects include two recent Mutant Ninja Turtles titles and the Paw Patrol series of films.

 

'Render in peace'

 

Visual effects studios play a key role in film production.

 

Most modern big-budget movies and television shows will rely heavily on visual effects to transport actors and audiences into outer space, the distant past or the deep sea.

 

And the appearance and non-vocal performances of characters and creatures, fantastic and otherwise will often be partly or fully the creation of animators and other specialist staff.

 

As well as purely animated films and TV, many live action releases are in large part the work of the employees of VFX studios.

 

Many staff work film-to-film on fixed-term contracts, so redundancies may not reflect the total impact of the business' troubles on jobs.

 

According to animation news publisher Cartoon Brew, external an email sent over the weekend by chief executive Caroline Parot said "external headwinds" had exacerbated problems caused by factors including post-covid recovery.

 

She also said the US writers' strike which led to a slow-down in demand for VFX work causing "severe" pressure on cashflow.

 

Those same issues will add to the anxiety of staff and may fear re-entering what has been a relatively lean jobs market for VFX professionals.

 

"Render in peace" one self-described 13-year veteran of The Mill wrote on Reddit, external - a reference to the computationally intense process of producing final, film grade images, a process known as rendering.

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Link: Oakwood Theme Park: Pembrokeshire venue shuts down immediately - BBC News

 

Wales' largest theme park has announced it will shut down with immediate effect after almost 40 years.

 

Oakwood Theme Park in Pembrokeshire almost closed in 2008 but a £25m investment rescued the park, which employed up to 200 people according to its LinkedIn profile.

 

However, due to a drop in visitor numbers, the owners Aspro Park said "future investment is unsustainable" and it would not be opening for the 2025 season.

 

The company added: "All possible avenues have been explored to avoid the closure, and we fully recognise the impact of the closure on the local community and the loss that will be felt as a result."

 

The park added that "unrelenting economic challenges" from electricity costs, ride parts and food and drink inflation, as well as changes to national insurance thresholds affected the decision.

 

Aspro Parks said this was the first time it had closed a park or attraction in its "entire history".

 

It added: "Unfortunately, we could no longer see a sustainable way forward and will seek to improve our other parks using the assets and where possible team elsewhere."

 

The owners said they felt "sadness" for the loss of "a rite of passage for many young visitors".

 

The Treasury said, while it was a commercial decision, "we understand this will be a concerning time for workers at Oakwood Theme Park and their families".

 

It added that the Budget meant "more than half of employers will either see a cut or no change in their National Insurance bills".

 

Rollercoaster enthusiast and Oakwood superfan Ryan Hackett said he was "gutted" at the news of the closure.

 

Mr Hackett, 64, from Milford Haven, has been on the Megafobia ride at the park 6,200 times and was hoping to reach 7,000 rides over the coming season.

 

"As a rollercoaster enthusiast, it's the last thing you want to see - a park closure," he said.

 

"I just hope there's a buyer. I joked on social media earlier - can someone lend me £100m?

 

"My phone has been ringing all evening from other rollercoaster enthusiasts from all over the UK and everyone is devastated."

 

Samuel Kurtz, Carmarthen West and South Pembrokeshire Member of the Senedd, said the park's closure was "deeply sad" and it had a "special place in the hearts of many".

 

The Welsh government said: "We stand ready to offer support to the workforce affected by this decision."

 

First Minister Eluned Morgan urged Aspro Parks "to do everything possible to support their employees" including "exploring redeployment opportunities within their wider business".

 

The theme park made headlines across the UK in 2004 when Hayley Williams, 16, died after falling 100ft (30m) from the top of the Hydro rollercoaster.

 

An inquest into her death in 2006 heard a safety bar designed to restrain passengers as the ride plummeted down a near-vertical chute at 50mph had not been lowered before it started.

 

But an unlawful killing verdict was ruled out by a coroner who said there was no evidence of gross negligence by anyone involved.

 

But two years later Oakwood Leisure, which ran the park at the time of the accident, was fined £250,000 after admitting staff had failed to ensure passengers were safely restrained on the high-speed ride.

 

The owners of Oakwood are not alone in criticising the impending rise in national insurance contributions and an increase in the living wage.

 

While the public sector awaits news of possible mitigation against the NICs increase, the private sector has had to prepare for the change and to adjust their budgets accordingly.

 

Faced with post-pandemic cost increases affecting products and services, companies and their lobby groups have warned that jobs will be lost as these latest rises come into effect.

 

The UK government insists the increase in national insurance contributions is vital to improve the funding of our public services.

 

In Pembrokeshire the impact of Oakwood's closure will hit the local economy, and there will be concerns about the economic winds which have shut the doors on what was once a titan of the Welsh tourism industry.

[ICTDirect_Dave]

Link: Oakwood Theme Park: Pembrokeshire venue shuts down immediately - BBC News

 

this makes me incredibly sad! I spent many glorious summer holidays in pembrokeshire and visited oakwood each holiday.

It was a glorious day out, busy but not crazy and always worth staying for the whole day and into the evening.

 

They used to open till 10pm in the summer and have fireworks and entertainment at closing time.

 

Sad to see it go.

[Fazza]

Noooooooooo! Poundland is struggling.

 

They're up for sale now!

 

https://www.standard.co.uk/business/poundland-high-street-retail-shoppers-pepco-discount-stores-b1214981.html

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Boots to close 290 stores

 

https://www.express.co.uk/life-style/life/1954182/Boots-store-closures-uk

 

Link: Walgreens: Boots owner bought by private equity firm in $10bn deal - BBC News

 

The US owner of the Boots pharmacy chain is being taken over by a private equity firm in a $10bn (£7.8bn) deal.

 

The price being paid for Walgreens Boots Alliance is a fraction of what the company was worth a decade ago, reflecting its struggles with growing debt and shoppers going online for cheaper products.

 

There have been reports that the Boots chain could be sold off separately by its new owner, US private equity firm Sycamore Partners.

 

Walgreens chief executive Tim Wentworth said, external the firm was navigating the "challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape".

 

"While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus and change that is better managed as a private company," he added.

 

George Godber, fund manager at Polar Capital, told the BBC's Today programme that Boots had been "in and out of different ownership for some time" and that "its business model has struggled".

 

"People are buying more of those personal healthcare brands online than they are in the shop."

 

Catherine Shuttleworth, chief executive of Savvy Marketing, said there would be "a lot of interested parties" if the Boots business was put up for sale.

 

She said the company had turned itself around after going through a difficult period and it was an "unbelievably trusted brand" with "a unique place in the UK psyche".

 

There are now 1,900 Boots stores left in the UK after the pharmacy chain began closing shops in June 2023 as part of a shake up.

 

Ms Shuttleworth said reports of a Boots sale would be difficult for staff.

 

"Any uncertainty over your ownership is going to make you quite concerned if you work for Boots."

 

Boots has been contacted for comment.

 

Sycamore Partners is paying $11.45 per share for Walgreens Boots Alliance, which is more than its shares are currently worth on the US stock market.

 

Walgreens shares rose by nearly 6% in extended trading in New York. But the company's stock market value has fallen by around 80% over the past five years.

 

The deal is expected to be completed by the end of this year.

 

The Illinois-based Walgreens took a 45% stake in Boots in 2012.

 

It bought the remainder of the firm two years later in a deal that valued Boots at around £9bn.

 

Walgreens is also made up of its namesake US retail business, specialty pharmacy group Shields Health Solutions and healthcare provider VillageMD.

 

In recent years, the company has faced mounting challenges as customers turned to cheaper rivals.

 

In 2022, Walgreens put Boots up for sale but later dropped these plans, saying potential buyers had been unable to raise enough funds.

 

In October, it announced plans to shut 1,200 Walgreens stores in the US over the next three years under a cost-cutting programme.

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Link: No offers to take over Inverness Caledonian Thistle - BBC News

 

No offers have been made to take over Inverness Caledonian Thistle (ICT), its joint administrators have said.

 

The Scottish League 1 club was placed into administration last October after running up large debts. The side was also deducted 15 league points.

 

The administrators, BDO, said potential new owners had raised a number of concerns, including how loans of £3.5m would be paid off.

 

BDO added that a sale did not currently appear to be achievable, leaving the future of the club at "significant risk".

 

The deadline for offers was 6 March.

 

Administrators said concerns had also been raised that potential new owners would not be able to reach an agreement with all shareholders to adequately take control of the club.

 

There were also uncertainties about ownership of land around the stadium.

 

Former club chairman Alan Savage has provided ICT funding to allow it to finish the 2024-25 season.

 

BDO said Mr Savage's support since last summer to the end of the season would amount to £1m.

 

The administrators said he had indicated he would be prepared to cover 25% of the cost of a new owner taking over, and 25% of the funding needed for the next two seasons.

 

The club faces being deducted a further five points at the start of next season as further punishment for getting into financial difficulties.

 

'Fans disappointed'

 

A BDO spokesperson said: "We appreciate that this latest update will be disappointing for players, fans and the wider community.

 

"Given what has been achieved both on and off the pitch throughout the administration period, we would very much like to see a sale of the club to ensure that its future is secured and we would encourage all parties to cooperate in this endeavour.

 

"We are grateful for Alan Savage's ongoing financial support and would urge any interested parties to come forward.

 

"The joint administrators would welcome the opportunity to discuss and provide a guide in respect of an acceptable price."

 

ICT is currently in eighth place in the 10-club League 1.

 

The club's financial problems were exposed after it was relegated from the Scottish Championship at the end of the 2023-24 season.

 

Fans reacted angrily to the drop into League 1 after defeat to Hamilton, and to subsequent issues including a plan to move ICT's training base to Fife.

 

It was suggested the move to Kelty Hearts' facility would make it easier to recruit players from central Scotland, but the proposal was later abandoned.

 

Losses ran to £1.2m in the 2023-24 season and the club forecasted a similar loss this season, but warned that figure would not include money spent on restructuring following relegation.

 

A football club enters administration when its debts are greater than its assets, or when it cannot repay its debts, according to trade association R3.

 

The aim of the process is to rescue the club as a going concern in the hope of finding a buyer for it.

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Link: Forever 21 files for bankruptcy again amid pressure from fast-fashion rivals | US news | The Guardian

 

Forever 21’s US operator on Sunday filed for bankruptcy for the second time in six years and said it would wind down operations in the country, hurt by mounting online competition in the fast-fashion sector and weak mall traffic.

 

The company blamed the situation on higher costs and foreign companies taking advantage of duty-free treatment of low-cost packages from China to undermine its pricing power.

 

“We’ve been unable to find a sustainable path forward, given competition from foreign fast-fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin,” said Brad Sell, finance chief at F21 OpCo that operates Forever 21’s roughly 350 US stores.

 

De minimis refers to the US waiver of standard customs procedures and tariffs on imported items worth less than $800 that are shipped to individuals and helps Chinese online retailers such as Shein and Temu to keep prices ultra-low.

 

Donald Trump paused his administration’s repeal of the clause as part of the fresh tariffs imposed on China in February.

 

Founded in Los Angeles in 1984 by South Korean immigrants, Forever 21 was popular among young shoppers on the prowl for stylish but affordable clothing. By 2016, it operated about 800 stores globally, of which 500 were in the US.

 

But, the rise of e-commerce retailers and the slow death of the American mega mall hurt apparel companies such as Forever 21 and Bonobos-parent Express, which filed for bankruptcy last year.

 

“Brick-and-mortar retailers like Forever 21 operate in a highly competitive environment where the cost of doing business is expensive and rising with inflation rates,” Sarah Foss, head of legal and restructuring at Debtwire, which provides data and analytics on leveraged loans.

 

The retail sector saw 20 bankruptcy filings since the start of 2024, while 25 retail chains have had at least two bankruptcy filings since 2016, according to Debtwire data.

 

F21 OpCo is planning for liquidation sales at its US stores, while it goes through a court-supervised sale and marketing process for its assets, which it estimated to be worth around $100m to $500m.

 

Its US stores and website will remain open through the process and its international stores remain unaffected.

 

It has liabilities in the range of $1bn to $10bn, according to a filing with bankruptcy court in the district of Delaware.

 

Forever 21 previously filed for bankruptcy protection in 2019 and was brought out of it by Sparc Group, a joint venture between label owner Authentic Brands Group and mall operators Simon Property and Brookfield Asset Management.

 

It is now owned by Catalyst Brands, an entity formed on 8 January through the merger of Sparc and JC Penney, a department store chain owned since 2020 by mall operators and Simon Property Group.

 

When Catalyst Brands was formed, it said it was “exploring strategic options” for Forever 21.

 

Authentic Brands will continue to own Forever 21’s trademark and intellectual property, which could live on in some form. Its CEO, Jamie Salter, last year called acquiring Forever 21 “the biggest mistake I made”.

[6Foot2]

Link: The Matrix film producer files for bankruptcy - BBC News

 

Village Roadshow Entertainment Group, the film production company behind franchises such as The Matrix, the Joker and Ocean's has filed for bankruptcy protection in the US, according to a filing with a Delaware court.

 

The firm has blamed its financial troubles on a legal battle with its former partner Warner Bros (WB) and a "failed and costly endeavour" into the production of independent films and television series.

 

In a bid to mitigate some of its financial problems, Village Roadshow is proposing to sell its extensive film library for $365m (£281m).

 

The company's debts are estimated to be between $500m and $1bn, according to the court documents.

 

Village RoadShow and WB produced and co-owned dozens of films over the years but their relationship soured in early 2022 after the release of the latest Matrix film - The Matrix Resurrections - on the streaming platform HBO Max.

 

Village Roadshow alleged WB had shut it out of its rights to any sequels and prequels of the films the two companies had previously worked on together.

 

"The WB arbitration has caused the company to incur more than $18m in legal fees, nearly all of which remain unpaid", chief restructuring officer Keith Maib said in a court filing.

 

That legal battle, according to Mr Maib, has "irreparably decimated the working relationship" between the two companies, ultimately ending "the most lucrative nexus" for Village Roadshow's historic success.

 

The other issue faced by Village Roadshow was a costly studio business launched in 2018. None of the films or television series independently produced as part of that endeavour delivered any profits.

 

Like other film companies in the US, Village Roadshow also struggled with a slump in demand from the pandemic and the disruption from the strike action by Hollywood actors and writers, which started in May 2023.

 

In December, the Writers Guild of America banned its members from working with Village Roadshow over the company's alleged failure to pay its contributors.

[6Foot2]

Link: DNA testing firm 23andMe files for bankruptcy as CEO steps down | Genealogy | The Guardian

 

Quote

The US genetic testing company 23andMe has filed for bankruptcy protection in the US to help sell itself, as its chief executive quit to pursue a bid for the business after several unsuccessful attempts.

 

23andMe said late on Sunday that it had started voluntary Chapter 11 proceedings in the US Bankruptcy Court for the Eastern District of Missouri to “facilitate a sale process to maximise the value of its business”.

 

The loss-making company, which provides saliva-based test kits to customers to help them track their ancestry, added that it was operating as usual throughout the sale process. “There are no changes to the way the company stores, manages, or protects customer data,” it said.

 

The San Francisco-based company said its chief executive and co-founder Anne Wojcicki was stepping down. She has been pushing for a buyout since April last year but was rebuffed by 23andMe’s board.

 

The company is still reeling from a huge data breach in 2023 that affected the data of nearly 7 million people, about half of its customers. Revenues have fallen as many of its 15 million customers scramble to delete their DNA data from the company’s archives.

 

Over the weekend the California attorney general, Rob Bonta, urged the company’s users to ask it to “delete your data and destroy any samples of genetic material held by the company”.

 

Mark Jensen, the company’s chair, said: “After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximise the value of the business.

 

“We are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”

 

Fighting for survival, 23andMe has cut the jobs of 200 people, amounting to 40% of its workforce, and stopped development of all its therapies in November. Wojcicki’s ambition has been to turn the company into a drug developer.

 

Wojcicki will be replaced by its chief financial officer, Joe Selsavage, until a permanent replacement is found but she is staying on the 23andMe board.

 

She co-founded the business in 2006 with Linda Avey and Paul Cusenza. In a post on X, she said she was “disappointed” by the bankruptcy filing and that her bid to take the company private was rejected. She explained she had resigned “so I can be in the best position to pursue the company as an independent bidder”.

 

She added: “If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics.”

 

Wojcicki offered to pay $0.41 (£0.32) a share earlier this month, down by 84% from an offer in February. Her private equity partner walked away after the board’s rejection of that bid.

 

Her latest offer valued 23andMe at $11m, below its current market value of just under $48m, and a long way from its $5.8bn peak in February 2021 after its stock market float on the Nasdaq exchange.

 

Last autumn, 23andMe agreed to pay $30m and give three years of security monitoring to settle a lawsuit accusing it of failing to protect the privacy of 6.9 million customers whose personal information was exposed in the data breach.

 

23andMe said it had received a commitment for debtor-in-possession financing of up to $35m from the Los Angeles-based private equity firm JMB Capital Partners, to support the business in the months ahead.

 

[Dos_Box]

WH Smiths to go - https://www.bbc.co.uk/news/articles/cj3n3en7gppo

Their shops have been sold to Hobbycraft owner Modella Capital and to be renamed to TG Jones, but intend to operate as before.

[LeMarchand]

2 minutes ago, Dos_Box said:

WH Smiths to go - https://www.bbc.co.uk/news/articles/cj3n3en7gppo

Their shops have been sold to Hobbycraft owner Modella Capital and to be renamed to TG Jones but intend to operate as before.

 

 

Alas Smiths, now Jones?

 

WHS was the first "interviewed for" job I had.