Home | Good Ways to Invest Money | Bank ratings | eCommerce Associate Blog | Corporate Site    

Financial trouble brewing for teashops

December 23rd, 2008 by admin | Filed under Central banks, Daily News, Recession, Retail, Saving, UK Banks, World Banks.

Trouble’s brewing for tea and coffee specialist Whittard of Chelsea, which is about to call in the administrators after months of poor sales.

Whittard of Chelsea are owned by Icelandic group Baugur and backed by Landbankski, the troubled Icelandic bank. After Iceland’s banking system has reached meltdown, the banks have cut off their cash support to Whittard’s.

Landbankski’s major shareholder Bjorgolfur Gudmundsson also owns Premier League club West Ham United, which is up for sale for a rumoured £250 million.

The City also fears entertainment chain Zavvi, the former Virgin Megastores, is close to the brink after the collapse of Woolworths’s distribution arm, which was its main supplier.

Celebrity jeweller Theo Fennell’s has announced an £840,000 loss, the first for three years.

The chain, whose jewellery is sold at prime London shops and concessions around Britain and the world, blamed the recession for sales falling by 20 per cent from £12.8m to £10.2m in the six months to 30 September.

Clients include Liz Hurley, Elton John, Elle Macpherson and the Beckhams. The downturn has forced the company to postpone a new store on Bond Street in London.

Home Retail Group, owner Homebase DIY chain, is holding up the FTSE as many retail sector shares fell over concern about the discounts on the high street.

Retail analysts say on 20% discounts, stores are halving profits. On 40% discounts, they are breaking even and on anything more, they are trading at a loss.

The City expects to see 15-20 major high street retailers to collapse after the January sales.

The FTSE closed down 37.77 points at 4,249.16 and in New York; the DOW was also down 54 points to 8519. The pound showed little movement overall, ending at 1.074 Euros and US $1.47.

For More information on specific Banks use these links

Related Websites

Tags: , , , , , , , , ,

«
»