Industry Professionals Decry Cancellation of Extra Bank Holiday in 2025

The day would have provided an opportunity to remember and a break from work

A recent announcement from Number 10 has confirmed that the proposed extra bank holiday in 2025 has been cancelled. Initially, there were speculations that an additional day off would be added to commemorate the conclusion of WWII, but this has been officially declared as not happening.

Leaders in the UK's hospitality industry have expressed their disappointment with the government's choice to abandon the extra bank holiday. They argue that such days are crucial for generating additional revenue in their sector.

Their sentiments mirror those from 2022, advocating for the permanent inclusion of an extra bank holiday to celebrate the late Queen's Platinum Jubilee. Martin Williams, a former figure in the M Restaurants and Gaucho group, has described the decision to cancel the 2025 holiday as "missed potential."

Williams stated: "The additional bank holiday would have been a vital stimulus for the hospitality sector amidst the economic challenges posed by the recent budget. Local pubs and independent eateries would have greatly benefited from it—a missed opportunity indeed."

A representative from UKHospitality told City AM: "Bank holidays are peak times when people in Britain prefer to dine out or take a mini-break, which naturally leads to an increase in sales for hospitality businesses. As the industry grapples with rising costs, high-demand periods like bank holidays, Easter, and summer vacations become even more significant for driving sales."

A spokesperson for the Campaign For Real Ale added: "Bank holidays are golden opportunities for the beer and pub sector. They offer an additional day of support for public houses, social clubs, and taprooms seeking to enhance their business."

"The pub industry continues to face financial hurdles, including soaring energy bills and escalating costs. CAMRA’s data indicates that pub enterprises are experiencing unprecedented turnover rates and are still confronting a severe decline in the number of licensees able to maintain their operations in the UK.

“Public houses are essential for community unity, offering inviting spaces for social engagement and aiding in the fight against loneliness. They remain central to our neighborhoods, and bank holidays are an excellent occasion for people to gather at their local pub to enjoy a pint with loved ones.”

The economic impact of additional bank holidays is significant, with most of the private sector ceasing operations for an extra day. Studies suggest that an extra bank holiday could cost the UK economy approximately £2.4 billion.

A spokesperson for Number 10 remarked: "The 80th anniversaries of VE and VJ Day will be monumental occasions for our nation, as we unite to honor the memories of those who served and the legacy they have left us.

"We are dedicated to commemorating these significant national events with the appropriate respect, which is why we have allocated over £10 million for events to mark these anniversaries.”

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.

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Sainsbury's Employees to Receive Salary Boost Following Successful Holiday Season and Market Share Gain

Even though Sainsbury's reported a fifth straight Christmas of increased grocery market share, with a nearly 4% rise in sales, its shares slightly declined on Friday morning. CEO Simon Roberts informed investors: "Taste the Difference products were included in half of the large Christmas baskets, contributing to a 16% sales increase, surpassing all main competitors." He also noted a nearly 40% increase in party food sales at Sainsbury’s and that in the critical days leading up to Christmas, over 200 bottles of sparkling drinks were sold every minute, with more than a third being from the Taste the Difference range, as City AM reported. Over the six-week holiday period, retail sales rose by 3.8% year-on-year, while total sales increased by 3.7%. However, Sainsbury’s share price fell over 2% to 256.20p on Friday morning. Richard Hunter, Head of Markets at interactive investor, observed: "share price reactions to the updates have been mixed, with some investors choosing to disregard the Christmas period's success and focus on the upcoming challenges." In its announcement, Sainsbury’s credited part of its growth to its Nectar card prices. The company also affirmed that it is on track to achieve an additional profit of at least £100m in the three years up to FY26/27. It was revealed that a quarter of UK residents visited the Argos website during the Black Friday weekend, indicating a "significant year-on-year increase". The third quarter saw the largest sales in technology. Nevertheless, the toy market was lackluster, and demand in higher-priced categories like furniture and consumer electronics remained low. The supermarket chain stated it is making "good progress towards our goal of achieving £1bn in cost savings by March 2027". Sainsbury’s has announced a 5% pay increase for retail staff this year, divided into two increments in March and August. The company believes this will "help us navigate a challenging cost environment while continuing to lead the industry in employee compensation". Both Sainsbury’s and Argos employees will see their hourly wage rise to £12.45 in March and £13.70 in London, with a further increase to £12.60 per hour in August and £13.85 in London. Roberts explained: "Our team members are essential to our Sainsbury’s plan, and we are pleased to announce a 5% pay raise for our hourly-paid staff this year, in two stages, to help manage the tough cost inflation environment." "We are committed to rewarding our team well for their service and productivity, and we will be the highest-paying UK grocer from March," he added. This follows Roberts' warning in November about the government's national insurance increase leading to higher prices for consumers, adding £140m to the supermarket’s expenses. "In the supermarket sector, where prices are key to success, staying competitive comes at a cost. For Sainsbury, the investment in

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TalkTalk may cut nearly 25% of consumer staff, including roles at Salford HQ

Nearly a quarter of TalkTalk's consumer staff, including some based at the company's Salford headquarters, are at risk of losing their jobs. It is estimated that around 130 out of 530 colleagues could face redundancy, equating to almost 25 per cent of the consumer team, the Manchester Evening News and BusinessLive have revealed. The company is expected to extend the redundancy consultation period over the Christmas fortnight. Last year, TalkTalk Group split its main operating business into three independent companies: TalkTalk Consumer, which serves over two million broadband customers, TalkTalk Business Direct, and PXC Communications, which provides services to other telecoms providers. Earlier this year, TalkTalk had warned it could potentially collapse unless a new finance deal was secured. In its July annual report, the directors expressed concerns about potential insolvency as early as 'August 2024 or sooner'. A source close to the company disclosed that following the demerger, the business is 'simplifying ways' to ensure a 'sustainable business model' for the future. The changes are expected to affect roles across the UK, particularly in centralised head office functions, reports the Manchester Evening News. While Soapworks in Salford Quays remains the company's HQ, it is unclear how many roles there could be impacted. It is understood that customers will not be affected by these changes. A spokesperson for TalkTalk commented: "This is the first stage in a multi-year transformation of our business to deliver differentiated service and product to our customers. We are simplifying our business to ensure that we can continue to offer great value connectivity to our millions of customers across the UK." "As part of this, we have made the difficult decision to launch a consultation about the future of some roles at TalkTalk's consumer business." The telecom firm's executives have been actively working to refinance the substantial £1bn debt accumulated since the company went private in 2020, amidst escalating costs and increased competition. In a positive turn for TalkTalk, August saw a tentative agreement on a transaction, providing the company with a £400m financial boost. Regarding the financing, they stated: "The proposed transaction will leave the company well-funded to deliver the respective strategic plans of PlatformX Communications (PXC) and TalkTalk, continuing to capitalise on their strong positions in the market." In the latest financial report up to February 29, it was disclosed that TalkTalk's consumer and PXC divisions employed approximately 1,857 individuals - 1,229 in administrative roles and another 628 in sales and customer management. Back in 2019, TalkTalk relocated its headquarters to the Soapworks building in Salford Quays, a site once home to Colgate-Palmolive's toothpaste, detergents, and dishwasher liquid production. The group said: "It's been amazing to be able to bring everyone together under one roof to create a world-class, state-of-the-art campus for our entire business." The company also operates from locations in Gateshead and London.

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Naked Wines slashes losses to £5.6m after 'solid' trading during peak period

The CEO of Naked Wines has stated that the company is "in a better position, both financially and strategically" after significantly reducing its losses in the first half of its financial year. The Norwich-based firm reported a pre-tax loss of £5.6m for the six months to 30 September, 2024, a decrease from the £9.7m loss it recorded for the same period in 2023, as reported by City AM. However, Naked Wines also saw its revenue drop from £132.3m to £112.3m. These half-year results follow the appointments of Rodrigo Maza as CEO in April and Dominic Neary as CFO in November. Maza commented: "Naked Wines is in a better position, both financially and strategically." "We now have robust financial foundations, and our members remain loyal and engaged." "Our strategic initiatives centred around customer acquisition and retention are generating learnings, and we are currently experiencing solid trading during the peak season period." "I am pleased to welcome Dominic as our new CFO. His experience in digital and international businesses have helped him quickly transition, and I look forward to working with him as we focus the business on cash, profitability and growth." Regarding its future prospects, Naked Wines noted that its early peak season trading has been "solid" and its liquidity and cash situation is "continuing to improve". It anticipates that its full-year performance will align with previous guidance. However, the company acknowledged that its US inventory, "whilst in line with previously communicated plans, remains overstocked". Naked Wines has stated it is "reviewing options" to free up capital from its inventory, a strategy aimed at enhancing cash flow over the next two years. However, this could lead to higher liquidation costs and potentially result in EBIT at the lower end of guidance.

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Mike Ashley's Frasers lowers profit guidance after October's Budget

Mike Ashley's Frasers Group has revised its financial outlook downwards, attributing the change to tougher trading conditions following October's Budget. The retailer now anticipates an adjusted pretax profit ranging between £550m and £600m for the 2025 financial year, a decrease from the previously forecasted £575m to £625m. "Both ahead of and after the recent Budget, consumer confidence has weakened and recent trading conditions have been tougher," the company stated in its half-year results, as reported by City AM. Looking ahead to 2026, Frasers foresees incurring additional costs of at least £50m due to the Chancellor's decision to raise employers' national insurance and increase the minimum wage as announced in the Budget. The firm is actively seeking ways to "working hard to mitigate" these impending costs. In early trading, shares in Frasers Group dropped by over 13%. This guidance was issued alongside the company's report of a one-third decline in pretax profit for the six months ending in October, which fell to £207m. Frasers attributed its trading performance to a reduction in foreign exchange gains and fluctuations in equity derivatives. On an adjusted basis, pretax profit slightly decreased by 1.5% to £299m, down from £304m in the previous year. Despite continued sales growth in Sports Direct, this was overshadowed by "planned declines" in other areas such as Game UK, Studio Retail, and Sportmaster in Denmark. Frasers is currently engaged in "right-sizing" these previously unprofitable businesses to ensure their long-term sustainability. Additionally, the group cited a "challenging luxury market" as a factor negatively impacting sales.

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Channel 5 loses £160m in major blow ahead of major rebrand

Channel 5 has maintained that its operating model remains stable despite revealing a loss of nearly £160m in 2023. The channel, which is set to rebrand as '5' in April 2025, attributed the loss to a £273m impairment in the value of its investment in Viacom Interactive, a subsidiary of parent company Paramount Global, and not to Channel 5’s trading business. This led to a pre-tax loss of £159.5m for 2023, following a pre-tax profit of £78.1m in 2022. Recently filed accounts with Companies House show a rise in turnover from £370m to £398m, boosted by a payment of £80.9m, plus £9.1m in interest, from Channel 5’s sales partner due to a correction in that firm’s internal reporting between 2017 and 2023, as reported by City AM. Excluding this payment, the channel’s turnover totalled £318m. The channel’s operating profit increased from £80.1m to £112.4m in the year. However, excluding the payment, its profit totalled £22.7m. The 2023 results were made public after being filed with Companies House on 6 December, past the 30 September deadline. A statement approved by the board said: "Despite the tough commercial environment, Channel 5’s portfolio – which includes 5STAR, 5USA, 5Select and 5ACTION – achieved a fifth consecutive year of share growth (five per cent), making it the only public service broadcaster (PSB) to increase its total share of the UK viewing audience." "In addition, Channel 5 was the only commercial PSB to increase its audience share in peak time (one per cent) as well as its share of ABC1 viewers in peak time (four per cent)." "For a fourth consecutive year, My5 achieved growth in its viewing, reflecting the success of the free streaming service and the appeal of Channel 5’s content to a streaming audience." On its future, the business added: "Looking ahead, the business continues to work to future proof its offering and enhance the experience for viewers, advertisers and content partners."

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Train company says 'do not attempt to travel' as multiple lines closed

Train services in parts of England and Wales remain disrupted following Storm Darragh, with several lines closed due to fallen trees and debris. Great Western Railway said passengers should “not attempt to travel” between Swansea and Carmarthen until at least noon, or on the Looe, St Ives and Gunnislake branch lines in Cornwall until at least 11am. The Barnstaple and Okehampton branch lines in Devon are expected to be open by 8am following safety checks. Westbury and Chippenham stations in Wiltshire have reopened following storm damage, and services have resumed on the Falmouth branch line in Cornwall. Passengers who choose not to travel on Monday can claim a full refund on their ticket or travel on Tuesday. Damage caused by Storm Darragh means the railway line between Stafford and Stoke-on-Trent remains closed. This is affecting London Northwestern Railway services between Stafford and Crewe, and CrossCountry trains connecting Manchester Piccadilly with stations such as Paignton, Bournemouth, Southampton Central, Bristol Temple Meads and Birmingham New Street. London Northwestern Railway passengers can use rail replacement transport between Wolverhampton and Crewe. Affected CrossCountry services will be diverted via Crewe and will not call at Stoke-on-Trent or Macclesfield. Rail replacement transport is operating between Stafford and Stoke-on-Trent. Transport for Wales said all railway lines are blocked on 11 routes, such as between Swansea and Milford Haven, between Swansea and Shrewsbury, between Birmingham International and Shrewsbury, and between Chester and Holyhead. Following major disruption from Storm Darragh over the weekend, National Rail Enquiries warned “services may be busier than normal today and experience severe overcrowding”. West Midlands Railway is unable to operate on the line serving Bromsgrove, Redditch, Birmingham New Street and Lichfield Trent Valley because of damage to overhead electric wires. Passengers were warned to expect cancellations and delays to train services on the West Coast Main Line between London Euston and Scotland early on Monday. Network Rail said this is because it is completing repairs to overhead line equipment in Polesworth, Warwickshire. Services are being diverted via Birmingham while the work is taking place. Chris Baughan, Network Rail’s West Coast South route operations manager, said: “Storm Darragh has wreaked havoc on the railway this weekend and we are very sorry to passengers for the disruption to train services this morning on the West Coast Main Line as frontline teams continue with emergency repairs and the clean-up.

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