Retail & Consumer
A well-established family business in Cornwall, specializing in taxi and coach hire services, has declared bankruptcy, resulting in a debt of nearly £1 million and leaving six employees without jobs. Summercourt Travel, located in Newquay, was announced to be insolvent in the fortnight prior to Christmas.
As per Companies House records, the firm initiated creditors' voluntary liquidation on December 18th, a legal procedure that permits the directors of an insolvent company to shut down operations voluntarily. Kim Richards and Richard Tonks from BK Plus, a firm in Walsall, West Midlands, were designated as the joint liquidators. The Gazette officially announced this development on Boxing Day. Financial records from Companies House indicate that Summercourt Travel, which was founded approximately two decades ago, has outstanding debts exceeding £908,000. These include a director's loan of £280,000 to a creditor, £137,000 owed to Funding Circle in London, nearly £31,000 to HSBC, slightly over £29,000 to HM Revenue and Customs, and almost £21,000 to Haydock Finance Limited in Lancashire. Other creditors encompass Cornwall Council, various vehicle companies, utility providers, and even Amazon for a sum of £43. Despite the liquidation of Summercourt Travel, its directors Robert and Sam Ryder, along with company secretary Sharon Ryder, are still managing Merlin Vehicle Rental and Travel Cornwall. These businesses are situated at the same address as the now-defunct Summercourt. Online inquiries for Summercourt Travel are automatically redirected to the operational Travel Cornwall website, as reported by Cornwall Live. The website portrays the company as a "locally based family-run business offering a range of transportation services including taxis, minibuses, executive cars, and coach and bus services." It further states that the company's central location is ideal for providing services across Cornwall and beyond. Efforts have been made to contact Robert Ryder, whose email still mentions Summercourt Travel, and the liquidators for further comments. A spokesperson for BK Plus Limited stated: "Summercourt Travel Limited went into Creditors' Voluntary Liquidation on December 18, 2024, with Richard Tonks and Kim Richards of BK Plus appointed as Joint Liquidators by the company's members and creditors. "Before our appointment, the company had stopped trading, leading to one of its clients taking over employment contracts for 24 of its staff, while the remaining six were laid off. "Post-appointment, the liquidators will now focus on converting the company's assets into cash, communicating with creditors, and, as per standard insolvency procedures, examining the circumstances that led to the company's collapse."
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Retail & Consumer
Post Office anticipates record £1bn cash withdrawals in December, surpassing last year's festive season
The Post Office is forecasting a record-breaking number of personal cash withdrawals this month, expected to exceed £1bn. This prediction surpasses last year's record numbers during the festive shopping season, with December 2023 witnessing a total of £930m in cash withdrawals, as reported by City AM. The latest figures showed that a total of £916m in personal cash was withdrawn in November, marking a 1.6 per cent month-on-month decline from the previous month. Personal and business cash deposits also decreased to £1.45bn and £1.1bn respectively, down month-on-month by 2.5 per cent and seven per cent, reflecting the nationwide impact of Storm Bert. Ross Borkett, Post Office Banking Director, said this year's predictions follow trends indicating more people will "rely on cash in order to budget in the run-up to Christmas Day," He added: "We’re seeing indications that personal cash withdrawals will be greater in December than the previous year," Borkett also noted that following the disruption caused by Storm Bert last month, postmasters and their teams are ready to support small businesses who heavily rely on cash takings in the lead up to Christmas. The Post Office recorded its highest daily withdrawal for cash on 22 December 2023, with over £62m taken out over the counter just days before Christmas.
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Retail & Consumer
Boohoo shares rebound from historic low as battle over its future continues
Shares in the fast fashion giant Boohoo have rallied from a record low as the company faces another pivotal moment ahead of a decisive vote this festive season. The Manchester-based conglomerate, which owns brands such as Debenhams and PrettyLittleThing, experienced a drop in its share value in July from 35p to 27p. However, Boohoo's shares have since rebounded to their pre-slump levels amidst ongoing debates about its strategic direction and management. Despite the recovery, Boohoo's shares are still trading lower than the 41p mark they hit in January 2024, and far below the peak of 413p during the height of the Covid-19 pandemic, as reported by City AM. This morning's uptick occurred as a leading shareholder advisory firm, Institutional Shareholder Services (ISS), advised Boohoo investors to oppose Mike Ashley’s attempt to secure a board position at the emergency meeting scheduled for later this month. Boohoo confirmed that ISS had recommended a vote against the proposal on 20 December. The fashion retailer is currently locked in a dispute with businessman Mike Ashley’s Frasers Group, which holds a 27% stake in Boohoo. On Sunday, Ashley penned an open letter to shareholders criticising the company for what he described as an "egotistical founder who has an unhealthy grip on the board" and claimed the company was "in desperate need of the guidance I can provide". He also cautioned against a scenario where there is a "fire sale of assets at knockdown prices", including the Debenhams brand, which he argued should not be sold. Ashley expressed his intention to take on the role of Boohoo’s chief executive to aid the brand and "prevent any dishonest profiteering" off investors. In retort, Boohoo maintained that Ashley was acting in pursuit of his own commercial interests, not those of its shareholders. On Monday, Boohoo articulated in a release: "ISS states that Frasers has offered a superficial view of performance and no specific plans for change and the two Frasers candidates, Mike Ashley and Mike Lennon, have real conflicts of interest, concluding that board change at Boohoo Group is not warranted." Chairman Tim Morris endorsed the support from ISS, stating it aligns with the board's recommendation to dismiss the proposals from Frasers Group. Shareholders are set to cast their votes on Ashley’s bid for a board position at the company before Christmas. A representative for Frasers commented: "The ISS opinion pre-dates the statements from Mr Ashley yesterday." They added, "Mr Ashley set out clearly in his letter of 8 December his determination to work on behalf of all boohoo shareholders and support Dan Finley to deliver on the opportunities to turn around the fortunes of the group and restore shareholder value." "He has been very clear he would not want Debenhams sold or any fire sale of assets and has put on record his commitment to transparency and shareholder consultation, something badly missing under the current board." "To achieve this, boohoo shareholders must vote for the resolutions on 20 December." AJ Bell investment analyst Dan Coatsworth commented: "Boohoo says it is not deliberately seeking confrontation with Frasers, yet this is more than just a simple war of words." "Its battle against the Sports Direct retailer is being played out in the public domain for all to see." "Each week brings a new form of attack from one side or the other, the latest being Boohoo latching onto a recommendation from proxy adviser ISS to vote against Frasers’ quest to get Mike Ashley a seat on Boohoo’s board." "Recommendations from ISS or fellow proxy adviser Glass Lewis rarely form the backbone of an announcement to the stock market, but Boohoo has seized upon ISS’s latest recommendation to launch another attack on Frasers." "This follows comments at the weekend from Mike Ashley that Boohoo must avoid a ‘fire sale’ of assets." "The fate of Boohoo will be in the hands of its shareholders when they vote on 20 December." "At 35.88p, Boohoo’s share price is on its knees, trading at a fraction of the 400p+ level seen in 2020." "Long-suffering shareholders might welcome someone of Ashley’s calibre joining the board and offering a different viewpoint to revive the business." "Equally, some shareholders may not take kindly to his vulture-like tendencies and view a board appointment as a pre-cursor to Frasers muscling in and taking Boohoo out on the cheap."
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Retail & Consumer
Debenhams makes first profit since Boohoo rescue despite sales halving
Debenhams, acquired by Boohoo from administration in 2021, has reported a turnaround to profitability even as revenues experienced a more than 50% reduction. In the period ending 29 February, 2024, the retailer recorded a pre-tax profit of £4.5m, contrasting sharply with a pre-tax loss of £732,000 in the previous year. Revenue declined to £39.7m from the earlier figure of £87.1m. Looking back further, Debenhams' revenue was £56.9m, alongside a pre-tax loss of £11.7m, as reported by City AM. Nonetheless, the company's gross merchandise value saw a considerable increase to £359.6m — a 65% rise — and its EBITDA also doubled, reaching £10.4m. UK sales decreased from £73.5m to £39.7m, while international revenue streams dried up, having contributed £13.5m in the preceding financial cycle. The workforce size at Debenhams also dropped significantly, falling from 115 employees to just 24 over the course of the year. The numbers detailed belong solely to DBZ Marketplace Online Ltd, operating under the Debenhams name, not to be confused with Debenhams Brands Online Ltd, which includes such labels as Burton, Dorothy Perkins, Wallis, and Oasis within the Boohoo portfolio. This newer entity, incorporated in May 2023, achieved sales totalling £138.6m and a pre-tax profit of £950,000 for the year ending on 29 February, 2024. Dan Finley, CEO of Boohoo and Debenhams, commented on the results: "Debenhams is an iconic British heritage brand. ". The company behind the revival of Debenhams has expressed optimism about its transformation into "Britain’s online department store." A spokesperson for the firm stated: "We bought it out of administration and are making great progress transforming it into Britain’s online department store." They added, "The market place model is stock-light, capital-light and highly profitable, as these results show. There is lots of opportunity ahead and we are focused on realising that for the benefit of all shareholders." The positive sentiment was further underscored by the announcement: "We have previously announced that the current year started strongly for Debenhams." These latest updates on Debenhams follow the disclosure of financial outcomes for other brands under the Boohoo umbrella towards the end of November. Notably, Prettylittlething reported a shift from a pre-tax profit of £22m to a loss of £6.5m, with revenue dropping from £634.1m to £475.8m. While Boohoo regularly reports its group results to the London Stock Exchange, detailed financial accounts for its individual brands are only made public annually via Companies House filings.