Retail news round-up on October 13, 2014: American Apparel to dispose of UK stores, chairman of Tesco’s audit committee to leave, Paperchase owner eyes sale and more.
American Apparel mulls disposing of UK shops
Embattled US fashion retailer American Apparel is believed to be considering closing its UK stores in Bristol, Leeds, Liverpool, Nottingham and on Neal Street in London’s Covent Garden, The Guardian reported. The chain has hired UK retail property specialist Kitchen La Frenais Morgan.
This would leave the retail firm with four outlets outside London – in Brighton, Birmingham, Glasgow and Manchester. The retailer is expected to hold on to its other nine shops in London, alongside a concession in department store Selfridges.
Chairman of Tesco audit committee poised to leave
Tesco’s audit committee chairman Ken Hanna is poised to step down as a non-executive director as the UK’s largest retailer reshuffles its board, The Telegraph reported. The departure of Hanna, who dismissed warnings from Tesco’s auditor about the risk of its commercial revenues being manipulated, is expected to be confirmed before the end of the year.
The grocery retailer has also been hit by the departure of another senior executive with the resignation of its company secretary Jonathan Lloyd.
Paperchase owner eyes £150m potential sale
Paperchase’s owner Primary Capital is exploring a £150m sale of the card and stationery retailer after receiving several bid approaches, The Sunday Times reported. The private equity firm has appointed two advisers — PwC and Financo — to handle the potential sale. Bid interest is thought to have come from private equity firms and trade rivals.
Chain Reaction Cycles lifts full-year profits to nearly £5m
UK’s biggest online bicycle retailer Chain Reaction Cycles has recorded full-year profits of £4.8m from £861,000 a year ago, The Sunday Times reported. Sales plunged 6% to £144.9m last year.
Wiggle’s ex-boss eyes bid for Sofa.com
Wiggle’s former boss Humphrey Cobbold is planning his comeback to online retail by eyeing a bid for online retailer Sofa.com, The Telegraph reported.
Cobbold is working on an offer for Sofa.com alongside buy-out group Close Brothers. Private equity firm Graphite is also understood to be vying for the business as an auction process for the furniture retailer draws to a close.