The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Shares in struggling British shopping centre operator Intu Properties Plc jumped more than 20 percent on Monday after the Sunday Times reported that private equity firm Orion Capital Managers was considering a buyout of the company.
Orion Capital, founded by Aref Lahham, is in the early stages of finding partners for a buyout of Intu, which has been hit by store closures and several high-profile retail failures, the report said.
A series of company voluntary agreements have led to uncertainty over the value of the income from retail properties and many British property developers have been looking to move away from the ailing retail sector.
Intu, which owns the Trafford Centre in Manchester, has also been hit with high-profile closures and company voluntary agreements — an insolvency procedure used by retailers to restructure leases — from brands like Debenhams, Toys R Us, House of Fraser, New Look and HMV.
ADVERTISEMENT
Intu shares, which have shed nearly two-thirds of their value this year, rose as much as 21 percent to 44.2 pence, but were still well away from their peak value of 947 pence in 2006.
Intu declined to comment on the report, while Orion Capital did not immediately respond to a Reuters request for comment.
Many retail firms are also shutting down stores to cut costs and focusing on online sales, dealing a blow to real estate firms like Intu, Hammerson and Land Securities that get a large chunk of their business from retailers.
Intu, which scrapped its dividend earlier this year and changed management after two failed takeover bids, in July adopted a new five-year strategy to reshape its business and focus on fixing its balance sheet.
The mall operator reported a fall in first-half net rental income in July and has been looking to preserve cash and reduce its debt by selling assets.
Intu, which has a market valuation of £496.6 million ($608 million), has net external debt of £4.89 billion according to its half-yearly report.
By Shashwat Awasthi and Noor Zainab Hussain; editors: Arun Koyyur and Susan Fenton.
The British musician will collaborate with the Swiss brand on a collection of training apparel, and will serve as the face of their first collection to be released in August.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.