Retail news round-up: Tesco-Booker deal to come under scrutiny, former BHS executives to benefit from pension deal, and Sports Direct loses trademark battle
Tesco-Booker deal to come under scrutiny
Tesco has been found paying less to staff at One Stop and charging customers extra for products, an investigation revealed, raising questions on its Booker takeover, The Times reported.
Tesco’s deal with Booker has to be approved by regulators.
An investigation by The Times revealed that prices of goods at One Stop are sometimes 40% more than in Tesco Express.
The starting hourly pay rate at One Stop is £7.20, the lowest of the symbol group retailers.
The employees also did not receive a 5% “turnaround bonus” awarded to Tesco staff last year.
A Tesco spokesman said: “One Stop is a completely different kind of business to Booker, and it’s misleading to make a link between the two transactions.
“The retail market has radically changed since 2002 and One Stop is operating in a very different market today. Our priority is to provide the best possible offer for our One Stop shoppers and we have made significant investments over the last two years.”
BHS’s former managers to benefit from pension deal
BHS’s 16 former executives with large pensions will benefit from Sir Philip Green’s deal as their Pension Protection Fund's (PPF) cap has been removed, The Telegraph reported.
The Work and Pensions Committee analysing the deal found that Green could receive a £15m refund if 90% of eligible members choose to join the new scheme.
MPs have urged Green to give the £15m rebate he potentially stands to receive from the settlement back to pensioners.
MPs said that some pensioners will receive less than 80% of the value of their full scheme benefits under the settlement.
Sports Direct loses trademark battle
Sports Direct has lost a trademark suit against Fitness Direct, which sells sports equipment including dumbbells and kettlebells online, arguing that the names would confuse consumers, The Telegraph reported.
The trademark hearing officer said the companies’ logos were different and the words were not unique.
The Body Shop attracts investors
The Body Shop, the L'Oréal owned-chain, has attracted a series of private-equity investors for bids ahead of its deadline, Reuters reported.
The company is trying to achieve a value of €1bn (£877m). However, sources have said that most investors are providing a value of less than €700m.
Bain Capital, BC Partners, CVC and Advent are among the investors that are planning to make an offer for the business.
L'Oréal, Bain Capital, BC Partners, Advent and CVC declined to comment.