Retail news round-up: Tesco faces further legal action over accounting scandal; Transline bought by Russell Taylor Group; and new etailer to launch in September.
Tesco to face further legal action over accounting scandal
Tesco may face further legal action over its accounting scandal as law firm Rosenblatt Solicitors is compiling a list of potential claimants to support the move, the Daily Mail reported.
The law firm claimed that the current compensation is not enough as the company had been “releasing inaccurate financial information for much longer”.
Rosenblatt’s managing partner Tania MacLeod said: “We believe the Financial Conduct Authority (FCA) compensation scheme does not extend far enough.
“What is beyond doubt is that, even on the findings of Tesco’s own investigation, the reporting of its financial information was overstated long before August 29, 2014 and thus there is a likelihood that investors bought stock at inflated prices going back to at least 2013.”
Transline sold to Russell Taylor Group
Transline, the employment agency that supplied workers for Sports Direct’s warehouse, has been sold to the recruitment specialist Russell Taylor Group, The Telegraph reported.
Clare Boardman and Daniel Butters of Deloitte were appointed as administrators on Thursday, overseeing the sale of the business to NMS Projects, part of the Russell Taylor Group.
Under the sale, the 5,560 people employed by Transline will be transferred to NMS immediately.
Transline’s joint administrator Clare Boardman said: “Following a period of uncertainty and what turned out to be a poor Christmas trading period, the conclusion of the sale is an excellent outcome for all involved.
“This will safeguard the employment of the remaining workforce, which is significant.”
Studio British to launch in September
Studio British, a new etailer which sells only UK brands, is set to launch in September, Drapers reported.
The etailer will open its site with 12 labels: Mackintosh, Johnstons of Elgin, Sanders & Sanders, Private White VC, John Smedley, Pringle of Scotland, Gloverall, Trickers, Genevieve Sweeney, Fibre & Hide, Baia Bags, and Yull.
The store will stock menswear, womenswear, footwear and accessories for 30- to 55-year-olds.
Studio British founder Anabel Calvo said: “We’re focusing on brands that care about the provenance of [their] clothing.
“We believe in supporting UK manufacturing and turning away from fast fashion to slow, sustainable fashion.”