Retail round-up on May 11, 2016: Staples and Office Depot terminate their merger deal and Amazon Video Direct unveiled to rival Google’s YouTube.
BHS bidder Yousuf Bhailok says he won’t extract money from business
Property millionaire Yousuf Bhailok, one of the potential suitors in the race to bring BHS out of administration, has committed not to extract any money from the retailer for three years if he succeeds in taking control of the high-street business.
He also confirmed that he has renamed his bid vehicle from BHS Revive to Retail Revive due to staff sensitivities.
Bhailok’s Retail Revive has officially submitted its interest with BHS administrator Duff & Phelps.
Staples and Office Depot to end $6.3bn merger deal
Office supply retailer Staples and its rival Office Depot are to end their planned $6.3bn (£4.4.bn) merger after a US federal judge ordered the deal temporarily halted because of antitrust concerns.
In a three-page order granting the Federal Trade Commission (FTC) request for a preliminary injunction, Judge Emmet Sullivan of the US District Court for the District of Columbia said the agency had shown there was a “reasonable probability” that the merger would “substantially impair competition” for the sale of office supplies to large business customers.
Staples said it would pay Office Depot a $250m (£173m) break-up fee.
“We are extremely disappointed that the FTC’s request for preliminary injunction was granted, despite the fact that it failed to define the relevant market correctly and fell woefully short of proving its case,” Staples chief executive Ron Sargent said in a statement.
“We believe that it is in the best interest of our shareholders, customers and associates to forego appealing this decision.”
Amazon rivals YouTube with own online video service
Etailer Amazon has unveiled an online video service to compete with Google’s YouTube.
Amazon Video Direct will allow users to post videos and earn royalties.
Viewers can rent and buy content or watch it for free with adverts.
Initially, the videos will be viewable in the US, Germany, Austria, Japan and the UK.
“There are more options for distribution than ever before and with Amazon Video Direct, for the first time, there’s a self-service option for video providers to get their content into a premium streaming subscription service,” said Jim Freeman, vice president of Amazon Video.