Retail news round-up on March 10, 2016: BHS staff face immediate pension cut; multiple investors built stake in Burberry; and Reiss close to selling substantial stake to Warburg Pincus.
Staff at BHS to have 10% pension cut
BHS employees are to have immediate cuts to their pension entitlements.
Current and former staff under the age of 60, including some already receiving payments after retiring early, will have their pensions cut by at least 10%.
The forthcoming changes were triggered when the retailer’s new owner filed court documents regarding a CVA that could lead to BHS closing some stores and cutting its rent bill at others by as much as 75%.
Institutional investors built up stake in Burberry
Burberry has been informed by HSBC that a 5.4% stake built in the fashion brand that spurred takeover rumours was on behalf of a group of clients, rather than one investor seeking to buy a significant position.
It is still unclear why the bank, which is listed as the custodian for the trades, took over three weeks to disclose the data.
A person close to the luxury label said the retailer was told that the unusual surge in HSBC holdings was “business as usual trading” and described the nature of the investors as “institutional”.
Meanwhile, Reimann family’s investment vehicle, JAB Holding, was understood to be the interested party mulling a takeover bid for the luxury goods giant.
Amazon set to open new distribution centre in Manchester
Etailer Amazon is on an expansion spree in the UK with plans to set up a new warehouse at Wythenshawe in Manchester this autumn.
The new distribution centre will also provide employment opportunities for 1,000 people over three years, with permanent jobs being created over three years. The firm intends to hire engineers, a computing team and human resources staff.
In addition, the internet giant intends to open another fulfilment centre at Coalville in Leicestershire later this year – taking the total number of hubs in Britain to 12.
Warburg Pincus could acquire ‘significant’ stake in Reiss
Fashion retailer Reiss is in exclusive talks with buyout firm Warburg Pincus about offloading a substantial stake in the business, according to Sky News.
The high street chain’s founder David Reiss is keen on selling a minority stake in the company.
Permira is also competing with the private equity group for the deal.