From CVAs to Acquisitions and Strategic Reviews
- Jules B considers Company Voluntary Arrangement after ransomware attack
- THG acquires skincare brand Biossance for $20m
- Quiz announces strategic review due to pre-tax loss of £1.5m
- Kantar predicts take-home grocery sales to surpass £13bn in December
- Sainsbury’s and Tesco see growth, Lidl fastest-growing grocer
- Marks & Spencer extends Christmas trading hours, closes on Boxing Day
Independent luxury retailer Jules B is considering a Company Voluntary Arrangement (CVA) following a ransomware attack that occurred in September. The MD and co-founder, Julian Blades, has sought assistance from KSA Group to navigate through the financial challenges. The retailer aims to focus more on its website, which constitutes 70% of its annual turnover. THG has agreed to acquire skincare brand Biossance from US biotechnology group Amyris Inc for a maximum consideration of $20m. Since its inception in 2015, Biossance has generated global revenues of $300m and is stocked in over 1,600 stores worldwide. The acquisition includes assets such as intellectual property, inventory, and debtors. The deal is expected to close in mid-December, with integration completing in Q1 2024. Womenswear retailer Quiz announced a strategic review after posting a pre-tax loss of £1.5m for the six months ending September 30, 2023. This loss, attributed to inflationary pressures, contrasts with a £1.8m profit in the same period the previous year. The company expects full-year revenues to be 6-8% lower due to reduced demand and lacklustre Black Friday performance. Kantar predicts that take-home grocery sales will surpass £13bn for the first time in December. In the four weeks leading to November 26, 2023, sales grew by 6.3% to reach £11.7bn. Sainsbury’s experienced its strongest growth in market share since March 2013, with a 10.2% increase in sales. Tesco also increased its market share to 27.5%, and Lidl was the fastest-growing grocer, achieving a record high share of 7.8%. Marks and Spencer has extended its Christmas trading hours, with over 400 stores open from 6 am until 10 pm from December 18-22. Some stores will also open until 10 pm on December 23 and 4 pm on Christmas Eve. However, M&S confirmed the closure of stores, support centres, and distribution centres on Boxing Day.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about various companies’ financial situations, acquisitions, and market trends without any significant digressions or misleading statements.
Noise Level: 3
Noise Justification: The article provides relevant information about various companies and their financial situations, as well as market trends in the retail and grocery sectors. It also includes specific numbers and data points to support its claims. However, it lacks a deep analysis or exploration of long-term trends or possibilities, and does not hold powerful people accountable for their decisions.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses financial challenges faced by Jules B and Quiz retailers, acquisition of Biossance by THG, take-home grocery sales growth, and Marks and Spencer’s Christmas trading hours and store closures. It also mentions the strategic review of Quiz.
Financial Rating Justification: The article contains information about financial performance, acquisitions, and strategic decisions made by companies in various industries, which are all related to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The ransomware attack on Jules B is not considered an extreme event as it does not meet the criteria of an extreme event happening within the last 48 hours.
www.retailsector.co.uk